What is Up With That Chip? Commonly Asked Questions About This Technology: Part 2
In our previous post, we discussed some frequently asked questions about that new chip credit card in your wallet. The chip has been implemented globally — and now in the United States — as a secure way for small business credit card services to protect themselves from data breaches. Considering that back in 2014, there were 1,540 worldwide data breaches that compromised more than one billion data records, the need for an updated payment processing industry is more important than ever. Here are some additional questions about that chip to help you fully understand what exactly is going on with your payment gateway.
Why are chip cards more secure than typical swipe cards?
The technology in chip cards, known as EVM, is much more secure as it has an extra layer of protection that swipe cards just do not have. The magnetic stripe on old credit cards contain unchanging data, meaning that once it has been swiped by a merchant processing company, the data can potentially stay there forever. Chips, on the other hand, create a unique transaction code every time they are used that cannot be reused through a secure PIN number.
Is the only way I can use my chip through inserting it into a machine?
Not at all! There is new technology out there, called near field communication, that allows you to simply tap or touch your card to a credit card processing system. While this technology is being developed, you’ll soon be able to use it almost everywhere — as long as you have a chip card!
If EVM technology is more efficient, why do I still have to swipe my card at some places?
This is only because that merchant processing company has not updated their system yet. Switching over to EVM can be quite expensive, so you may still have to swipe with some companies before they make the change. If you feel as if your information is at risk, simply use cash.
Will I be able to use my chip card outside the U.S.?
Yes, in most parts of the world, EVM technology is the only method of payment used.
Have any additional questions about the chip? Feel free to contact our professionals today.