To Chip or Not to Chip: Everything a Consumer Should Know About Chip Technology: Part 2
In our last post, we detailed to you three tips about chip credit card processing software and EVM technology. Here we continue our list so your credit card purchases can be as safe as possible.
4. Chip and PIN is more secure than chip and signature
Chances are if you have just received a chip card from your bank, it requires a signature. This chip and signature technology, unfortunately, is not as secure as entering your PIN, as hackers can easily forge a signature rather than a pin number. In fact, the Federal Reserve has reported that PIN transactions are up to 700% times more secure, and this is especially important considering that malicious outsiders were the culprits in 55% of all data breaches.
5. The security risk is still there
No matter the credit card payment processing services available, EVM technology is not completely foolproof. Even though the extra security measures that the chip brings drastically reduces the ability of a hacker to access your personal information, your credit card information is still stored within the system. This can happen especially with small business credit card machines, where the security features aren’t always as strong as you would hope. If they access your card, hackers can still use it to make online purchases or pay over the phone.
6. Don’t expect everything to be perfect
Even though the national deadline has passed for all merchants to switch their credit card processing systems to chip technology, this rule is pretty lenient. Because of this, do not expect everything to be perfect and similar across the board. Some stores may require chip and pin, chip and signature, or swipe and signature. A rule of thumb to follow: wherever the blue arrows point on the card reader is where you should enter your card!
7. You are still protected
Risks aside, as the card user you are still protected from fraud. Considering the fact that the nation is still new to this technology and it has its faults, most credit card companies offer zero liability to their users for unauthorized purchases. Typically, the bank will cover any funds stolen as long as you report the problem immediately.
New to EVM technology? Contact First Direct Financial today with any and all of your questions.