EMV cards have gradually replaced metal strip cards. A primary reason for this is that they come with stronger encryption to protect your card details during the transaction. While metal strip cards encode your details in the strip on the back of the card, these cards store your details in an EMV chip.
Read on to learn more about these cards, how they work, their efficacy in preventing fraud and more.
EMV stands for Europay, Mastercard and Visa, named after the three companies that created this technology. Rather than using metallic strips that were present in cards of the older generation, these store your important card information in a metallic chip.
One can access the card information from an EMV chip only through special readers, making them more secure than those with magnetic strips. The adoption of EMV technology has significantly helped reduce counterfeit scams.
Also Read: Difference Between Credit Cards & Debit Cards
An EMV chip card comes in two different variants. Here are the details about both of them:
To operate these cards, cardholders need to create a numerical PIN. You will have to enter this PIN on the Point-of-Sale (POS) machine to authenticate a transaction. Since a payment can’t proceed until you provide the PIN, it is a secure payment option.
A chip-and-signature card is one that requires your signature, instead of a PIN, to verify your identity before proceeding with the transaction.
While the EMV chip on this card transmits the data in a similar way as a magnetic strip, the process by which payment terminals read the card data differs. A magnetic cardholder had to swipe the card when making a transaction on a POS machine or withdrawing cash at an ATM machine.
However, these next-generation cards require you to insert the card in the machine’s slot. The payment terminal then reads the data and verifies the card details when you enter the PIN. This process is known as dipping.
Note that while magnetic strip cards are quicker than these new cards, the latter are more secure.
One of the main advantages of using an EMV card is the security it provides in the following ways:
While EMV cards have significantly reduced card fraud, there are still ways in which fraudsters carry out scams. They use online methods to get the card details and use them for identity theft or to make unauthorised purchases.
One way to protect yourself from such scams is to enter card details only on official websites that you know are secure.
While an EMV chip card is a smart option to prevent fraud, there are still some risks. One way to ensure better protection for your card details is to get the Fibe Axis Bank Credit Card, India’s first numberless card, which connects to your UPI ID and helps you pay seamlessly.
Since there are no numbers, it helps ensure your transactions are safer. That’s not all. You also get to enjoy a host of benefits, such as no annual or joining fees, up to 3% cashback on all payments, dining discounts and more. Download the Fibe Instant Loan App or register on our website to get your Fibe Axis Bank Credit Card.
EMV stands for Europay, Mastercard and Visa, the initials of the companies that built this technology for credit cards.
To operate an EMV chip card, you need to insert it in the slot of the ATM or POS machine rather than swiping it. The payment terminal then reads your card information through the chip and verifies your identity when you enter the PIN.
EMV cards offer more security than cards having magnetic strips as they codify your card data, making it difficult to read it without a specific payment terminal. It also changes the card code every time you use it for a transaction and the transmission of card data takes place. Moreover, it safeguards your card from the threats of card skimming and copying.