Tips on the Upcoming ï¿½Chipï¿½
As HomeTown Bank approaches the issuance of our EMV Chip Card, we thought you might like an overview of the EMV Smart Card.
|Angela Brooks, Senior Vice President
What Is EMV?
EMV (Europay, MasterCard, and Visa) commonly refers to the fraud-reducing technology that is built into payment cards with a smart chip. Visa, MasterCard, American Express and Discover have established EMV as the standard card technology in the United States. A smart card chip is a small computer (or microprocessor) that has its own data storage, processing power, and application software. Unlike a magnetic stripe card, a chip is extremely difficult to crack.
Every country that has switched to EMV cards has seen an increase in online fraud. Fraud doesn't go away, it just goes somewhere else, and that somewhere else is always online. The thieves can still steal the card number and expiration date, which still can be used online. Although the transition to EMV is expected to lead to less counterfeiting of cards, it will also encourage fraudsters to move to new areas of vulnerability. If counterfeiting physical cards is more trouble, criminals will naturally turn to buying items online with stolen credit card numbers.
So, although we are excited about the future of EMV in the United States, we must be vigilant in protecting our online purchases.
The smart chip embedded in the EMV card adds layers of security that goes beyond the magnetic strip. A smart chip offers greater security because it contains a secure vault that holds unique keys specific to each card that protect your transactions. A magnetic strip card houses all of the required information on the strip. This has made it easier for the fraudsters to place skimmers over the card readers at gas stations and at ATM machines. Each EMV transaction is protected with advanced cryptography and a numeric code that changes for each transaction which allows the terminals to authenticate the card.
The benefits of the EMV Chip Card:
Your new chip debit card will arrive by mail with instructions in the near future. Please feel free to contact us with any questions you may have.
- Safer transaction in person
- A more thorough authentication process
- Reduced identity theft risk