To Chip or Not to Chip: Everything a Consumer Should Know About EVM Technology, Part 1
Chances are, you may have recently received a new credit card from your bank. It most likely looks a little bit different than what you’re used to and has a little gold or silver chip on the front. These chip cards, known as EMV, are being reissued all over the nation as our country slowly switches over to different credit card processing platforms.
The goal behind this switch is to protect users against credit card fraud. In the past, if you were a victim of credit card fraud, the large credit card payment service providers were held accountable along with your bank. Now, the hope with EVM technology is that the responsibility of fraud will shift to the merchant where the fraud occurred.
This matters more than you might think. Americans prefer different methods of payment when they shop. According to a TSYS online survey, a full 43% prefer paying with debit cards, 35% choose credit cards, and only nine percent like paying in cash. With the implementation of this EVM technology, Americans will be making purchases more securely.
For beginners, this credit card processing software can seem rather confusing. Here are some important things consumers should know about purchasing with chip cards.
1. The magnetic stripe is still important
EVM technology is not yet replacing the mag strips on your card, simply because not every merchant in the nation is equipped with the chip. However, once a merchant has secure chip technology, you will be required to only use that payment method.
2. Your card does more work
With mag strips, you swipe the card once and then you process the payment by signing either the electronic pad or a paper slip. This isn’t the case with EVM as the customer will have to insert the chip, then finalize the transaction by adding a tip, putting in your PIN, or signing your name all while the chip is still in the reader. Overall, this process allows your information to be securely encrypted.
3. Online merchants do not benefit from this technology
Purchasing something online with your chip will be the exact same process as before because these merchants follow Card Not Present procedures. Since the card is not physically present for the transaction, you will not benefit from the enhanced fraud protection.
Learning about chip technology is important for any consumer. Keep a look out for the next part in our series on EVM.