{"id":633,"date":"2015-09-30T07:00:54","date_gmt":"2015-09-30T15:00:54","guid":{"rendered":"http:\/\/www.checkworks.com\/blog\/?p=633"},"modified":"2019-06-18T10:09:20","modified_gmt":"2019-06-18T18:09:20","slug":"633","status":"publish","type":"post","link":"https:\/\/blog.checkworks.com\/index.php\/633\/","title":{"rendered":"America, You\u2019ve Been Chipped"},"content":{"rendered":"

\"ID:93226454\"<\/a><\/p>\n

By MJ Plaster<\/span><\/p>\n

<\/p>\n

<\/a> Now that I have your attention, say hello to EMV, which stands for \u201cEuropay, MasterCard and Visa.\u201d The \u2018new\u2019 credit card technology goes live in the United States October 1, 2015, but the technology is anything but new. It\u2019s been used in Europe since the 1990s\u2014it\u2019s the global standard, with the United States lagging behind by nearly a quarter of a century.<\/p>\n

<\/a> Magnetic Strip Security vs. Chip Security<\/h2>\n

The old magnetic-strip technology contains static information; in other words, it has no ability to store new or changing information.If criminals can steal the information on the magnetic strip, they can replicate it as many times as they like onto blank, fake credit cards.<\/p>\n

\u00a0The EMV standard is more than a technology\u2014it\u2019s a full-blown platform, and it provides enhanced security against fraud. The technology built into the chip provides the ability to authenticate transactions beyond what is available with the magnetic strip cards. Each time you use the chipped card, it creates a unique transaction code that cannot be used again. If someone were to steal the chip information during a transaction, it would be denied at the very next point of sale (POS) by a chip-enabled, POS card reader. Nothing is foolproof, but this is about as close as you can get for in-person transactions.<\/p>\n

So, what\u2019s all the fuss about with these chips? The physical change you will notice on the card is the microchip on the front of the card.<\/p>\n

\"EMV<\/a><\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Japan Airlines VISA card with chip.<\/p>\n

EMV Chips Do NOT Use RFID Technology<\/h3>\n

Before we look at the new technology, it\u2019s important to know that EMV chips do not use RFID technology. This is important because it means that hackers with roving RFID scanners cannot steal your information, and there\u2019s no need to use credit card shields\u2014at this time. This could change in the future, but if, like me, it makes you feel better to use credit card shields, they\u2019re inexpensive\u2014packs of 10 are available from Amazon for under $10.<\/p>\n

Liability Shift<\/h3>\n

<\/a><\/a><\/a> After October 1, sellers without EMV chip readers will pay a price\u2014not an up-front fee but in a shift of liability. Today, if a fraudulent transaction occurs, the issuing bank is liable for the charge. After October 1, ComputerWorld<\/a> says, \u201c\u2026 liability for credit card fraud will shift from banks to merchants or the party using the least-secure technology.\u201d Note: If your card issuer hasn\u2019t sent you the new cards (and some haven\u2019t), you will not be liable for fraud.<\/p>\n

Benefit for Merchants<\/b><\/p>\n

Chase Paymentech<\/a> reports, \u201cThe Payment Brands [Visa, MasterCard, American Express and Discover] have introduced programs that waive a merchant\u2019s annual PCI-DSS audit if 75 percent of the respective payment brand specific transactions are processed through a dual contact and contactless EMV certified device.\u201d<\/p>\n

Adding to the Confusion \u2013 A Rose by Any Other Name<\/b><\/p>\n

The chipped cards are called at least seven different names, according to Creditcards.com<\/a>, and a few more names no one\u2019s thought of yet:<\/p>\n