EMV Credit Cards: 12 FAQs You Need Answered
Everything You Need to Know about EMV Cards
Big changes are happening in the world of credit cards. Are you ready? Do you have an EMV credit card and know how it will affect your shopping habits?
Here is everything you need to know about EMV credit cards and the transition taking place in the US.
Q: What does EMV stand for?
A: EMV stands for Europay MasterCard Visa and is a global standard for equipping credit cards with computer chips. EMV standards also ensure these new smart cards and retail payment terminals work in tandem.
Q: What is the difference between a regular credit card and an EMV credit card?
Traditional credit cards store pertinent information in a magnetic stripe on the back of the card. By swiping this card through a credit card reader, the merchant accesses the necessary information to process the transaction.
EMV cards (sometimes called smart cards) embed this sensitive information in a computer chip that appears as a small, metallic square on the face of the card.
Q: Why bother with EMV credit cards?!
A: We all know fraud is flourishing these days. Identities are stolen, data breaches expose financial information and criminals exploit innocent consumers. Switching to smart card technology will help decrease fraud and increase consumer protection; these cards are a new form of credit card fraud protection.
The creation of counterfeit cards is a significant form of credit card fraud. Criminals use skimming devices to capture credit card information on magnetic stripe cards.
For example, someone could place an inconspicuous skimming device on an unattended gas pump. Each time a credit card is swiped, the data is stored. The criminal responsible for the skimmer can then create a counterfeit card, a duplicate card, for each account number that’s been hacked. These counterfeit cards can then be used to make unauthorized purchases.
Skimming is only possible with magnetic stripe cards, not EMV. On a magnetic stripe card, the data that is stored is unchanging. On an EMV credit card, each transaction is encoded differently. Even if the data from an EMV card is intercepted, it is worthless when replicated.
Q: Will EMV cards make data breaches a thing of the past?
A: Unfortunately, the implementation of universal EMV card usage won’t totally deter hackers. However, these cards will make it more difficult for fraudsters to profit from what they steal.
Q: How will EMV cards affect online fraud?
A: EMV cards only offer protection for card-present transactions. Card-not-present transactions, or online shopping, will still be vulnerable. In fact, many experts anticipate a spike in online fraud as offline criminals look for a new target.
If you become a victim of online fraud during this technology shift (or any other time), let eConsumer Services® know. We can help you get your money back quickly and easily. Fill out the form to the right and we’ll get started on your case right away.
Q: How do you know EMV cards will prevent fraud?
A: While not yet popular in the US, EMV cards have successfully prevented fraud all over the word for several years. Smart cards are especially popular in Europe and Asia.
Q: Why are smart cards just now making their way to the US?
A: EMV credit cards were introduced in the smaller markets around Europe and Asia to test their success. Now, they are coming to the US.
The adaption to smart cards has been slow for a variety of reasons, primarily cost and effort. The switch to EMV cards means consumers, banks, and merchants will have to make drastic changes.
Merchants will need new point-of-sale terminals, banks will need to implement new liability rules, and consumers will need to learn a new payment method.
Q: Will consumers use EMV credit cards the same way they used magnetic stripe cards?
A: The act of completing an EMV card transaction will be slightly different. Rather than swipe a card, consumers will “dip” their card into a reader slot. Because unique transaction information will need to be created for each transaction, the time it takes to verify and process a transaction might take slightly longer than normal.
Two different versions of EMV cards will be issued: chip-and-PIN and chip-and-signature. Chip-and-PIN cards are similar to debit cards consumers have used in the past. After dipping the card, the cardholder will enter a PIN. Chip-and-signature cards are similar to traditional cards; the cardholder will verify the transaction with a signature after dipping the card.
Chip-and-PIN cards are more secure than chip-and-signature cards, but they will be less common during the first stages of the EMV transition. Chip-and-PIN cards are actually the norm overseas and will eventually become the primary product in the US.
If you’ve been issued a chip-and-PIN card and encounter a merchant terminal that doesn’t support the terminology, you’ll still be able to sign for the transaction.
Q: Will I always have to dip my card?
A: The first batch of EMV cards issued to consumers will require dipping. Eventually, the near-field communication that is popular in Europe will make its way to the US. Then, consumers will simply tap their card against a terminal scanner to use the contactless card reading technology.
Q: What if I have an EMV card, but the merchant isn’t set up to dip my card?
A: The transition to EMV cards is expected to be slow. Officials have set an October 2015 deadline for most businesses; merchants are expected to install and start using this new technology by then. However, industry insiders expect only about half of all merchants to be ready by the October deadline.
Meanwhile, it’s been estimate that about 70% of credit cards and 40% of debit cards will be EMV by that time. So what are technology advanced cardholder supposed to do when they encounter a technology challenged merchant?
These merchants will still be able to swipe the card, accessing the magnetic stripe. The first batch of cards issued will still have this technology, meaning cardholders can still shop with all their favorite merchants. Eventually, the stripe will be removed from cards issued at a later date.
Q: How will my new EMV card be issued?
A: You’ll need to talk to your bank about EMV credit card particulars. Each bank will have their own schedules and rules. You’ll probably need to request the new EMV card (and there will likely be a fee).
Generally, the bank won’t cancel your credit card account; they’ll simply issue a new card. Your credit card information should stay the same too.
Q: Will overseas travel be easier now?
A: Many international travelers have struggled for years when making credit card purchases overseas. Since places in Europe and Asia rely solely on smart cards, non-EMV customers from the US have been unable to complete transactions.
Now that EMV cards are more readily available in the US, foreign transactions will be slightly easier. However, there will still be certain barriers.
Most overseas merchants process the more common (and more secure) chip-and-PIN cards. The first cards issued in the US will only be chip-and-signature. Therefore, purchases made an unmanned kiosks (like train stations, bike rentals, and parking meters) will be impossible for chip-and-signature cardholders.
Some people are resistant to new things; however, the payment industry isn’t making this change just to be making a change! EMV cards will benefit everyone.
Do you haven EMV card? Have you been able to start dipping instead of swiping?
