Before we dive into the topic of EMV cards, we’d like to properly introduce you to the new chip card technology. In case you haven’t had the opportunity to use EMV cards, or this is the first time you’ve ever heard about these ‘smart cards’, we’d like to share a thing or two about them, and help you get a firm grasp of this topic.

What Is EMV Chip Card?

EMV stands for Europay, MasterCard, and Visa. Chip cards, as the term suggests, have computer chips integrated in them. On one hand, there is a standard credit card with a magnetic stripe that stores the following data: a 16-digit account number, 3-digit security code (CVC), and expiration date. All of this data, however, is static, meaning that it doesn’t change.

On the other hand, an EMV chip card contains the same data, but, unlike with magnetic-striped credit cards the data on smart cards is dynamic. Each time you make a purchase with a chip card, it generates dynamic data which is unique and encoded in safe mode.

Should You Consider Switching to an EMV Chip Card?

Why would you need an EMV chip card when a standard credit card never expires? Yes, there’s an expiration date on every credit card, but you can still use your credit card even after it expires. Having this interesting piece of information in your mind, why would you ever change your way of making payments and switch to using an EMV chip card? We don’t want to convince you that you should get an EMV chip card. Our goal is to share with you some of the most important facts about EMV chip cards, so that if you do decide to switch to this new technology, you’re sure that you’ve made an informed decision.

Without further ado, here are top five things you should know about EMV/chip card technology:

1. EMV cards or smart-chip cards create a unique transaction code every time you use your EMV card. This code cannot be used over and over again which is the case with magnetic-striped credit cards. This means that if a smart card gets stolen, a heckler wouldn’t be able to duplicate its transaction code because, as we’ve already mentioned, the code changes with each new purchase. If the hackler decides to go on a shopping spree, their card would be denied – preventing your financial loss.
2. EMV cards are not used in the same way as magnetic-striped cards. Chip card technology brings new terms. You will not swipe your chip card, but insert it into a terminal slot. This process is called ‘card dipping’. The smart card stays in the terminal slot until the transaction is finished, so that at the end of your transaction you have unique transaction data.
3. When making a transaction with an EMV card, you have two options. You can either enter a PIN code or verify your transaction with a signature.
4. Chip card technology is new, and not all merchants are chip-ready. However, this will not limit your use of EMV cards in any way. Chip cards have both a chip and a magnetic stripe in case some merchants and financial institutions are not yet equipped with new devices this technology requires.
5.  By the end of 2015, 575 million EMV cards will be issued, and 70% percent of U.S credit cards will be replaced with EMV cards by the end of the same year.

These have been some interesting and useful facts about EMV cards we had a pleasure of sharing with you on our blog. If you want to read more about other topics such as logo and website design, social media presence, etc, feel free to spend some time our blog. If you need any help with any of the topics we mentioned, be sure to contact Servistree today at 866-944-3244.