There’s a change coming to the credit cards millions of Americans carry around with them every day. To be clear, this is a positive change that will hopefully prevent credit card fraud from continuing to be a menace and monthly news story.
EMV credit cards are a safer, more secure alternative to the credit cards we currently use. Here are some of the most common questions about EMV cards to help learn more about this new financial tool.
What does “EMV” stand for?
Europay®, MasterCard® and Visa®. These three companies are working together to increase the security of MasterCard and Visa credit cards around the globe.
Are EMV cards more secure than my current credit card?
Yes, and here’s how. Credit cards with magnetic strips contain unchanging data, meaning if someone accesses data, they can easily make purchases with the card and cardholder information.
In contrast, EMV cards have data that is always changing. Whenever you use an EMV card to make a purchase, the chip within the card creates a unique transaction code that cannot be used again. This means that if a hacker stole the transaction code from a transaction, they wouldn’t be able to make any additional purchases with your card.
Do I have to do anything different when paying with an EMV card?
Yes. Instead of deft swipe, EMV cards use a process called “card dipping.” When making a purchase, you insert your card into a slot and wait for it to process. This is when the unique transaction code is created. While it make take longer than swiping, it is worth it for the extra security.
Will I still have to sign or enter a PIN for my card transaction?
It depends which verification method is tied to your card. Chip-and-PIN cards work just like debit cards, whereas chip-and-sign cards require a signature for authentication. It is expected that U.S. card issuers will issue chip-and-signature cards. Chip-and-PIN cards are more likely to roll out later in the transition process.
What happens if fraud does occur? Who is liable?
The party which is least EMV-compliant. For example, if you are issued an EMV card from Iowa State Bank and use it at a retailer that hasn’t upgraded its payment system for the new cards, after which your data is stolen, the retailer would be liable.
Will my EMV card work outside the country?
Yes and no. The United States is one of the last major countries to adopt EMV technology. If you’re traveling abroad you may find you won’t be able to use your card to swipe. As long as your credit card has a chip in it, you will run into fewer issues. However, it should be noted that chip-and-PIN cards are the norm in most European countries, with many retailers possibly not able or unwilling to run a chip-and-sign card.
For more information regarding EMV cards and how they will be introduced by Iowa State Bank, please feel free to contact any of our locations.
Iowa State Bank, Member FDIC, Equal Housing Lender