The U.S. is poised to upgrade its debit and credit card (payment card) security systems in an effort to fight skyrocketing fraud costs. And while federal regulations already protect you, as a consumer, from liability for most fraudulent transactions a crook could make using your account, when payment industry participants are hit by fraud, everyone’s costs increase.
That’s why the U.S. industry has been implementing EMV (Europay, MasterCard, and Visa) cards, which contain computer chips that authorize or validate payment-card transactions. We’re the last developed country in the world to do so. Here’s how the change will affect you:
- You will start to see these cards issued out with information about how it’s different, its enhanced security, and how to use it. You may have even noticed the major credit card companies have converted and debit cards are following. Retail merchants are slower to follow in updating their systems to process the new form of payment.
- It’s possible that some merchants and card issuers may choose not to convert and will continue to use mag stripe technology for a time. Your card still will work at the point of sale and consumers will continue to be protected from fraud liability.
- The transaction process will be slightly different. You’ll insert your EMV card in a POS (point-of-sale) terminal, wait for it to be authorized, and remove it. You’ll either sign a sales draft or key in your PIN to complete the transaction.
- Other countries likely will stop accepting mag stripe cards after a certain date. You’ll need an EMV card when traveling abroad and international travelers in the U.S. will have the additional protection against counterfeit that EMV cards afford.
What does this mean for you? EMV chip cards are more secure and offer you more protection and security.
Courtesy: SIU CU