Carolyn Balfany, SVP Product Development at MasterCard, addresses EMV. She explains: a) what it is and b) how it will benefit the entire payments ecosystem.
The days of credit and debit cards with black magnetic stripes across the back are not the future. The U.S. is moving toward EMV and chip cards. The media has been abuzz recently with references to this important change. So what do you need to know?
Q. The Basics – What are Chip Cards?
EMV chip cards have computer chips embedded in them. They are widely used in Europe and Asia and are beginning to be adopted in the U.S.
People who frequently travel abroad may already have chip cards or may have seen them used in London, Toronto and Istanbul. The rest of us are likely to have chip cards in our hands by 2015.
Q. Why Chip Cards?
Chip cards better protect your account information from fraud. And every electronic payment – credit cards, debit cards, digital wallets – is almost always more secure than cash.
The magnetic-striped credit and debit cards you are accustomed to contain “static” data, or payment data that does not change. The data stored in the magnetic stripes includes your 16-digit card account number, expiration date and 3-digit security code (CVC) like the one found on the back of your card.
Chip cards contain the same data and more. Each purchase or transaction that you make generates “dynamic” or unique data that is encoded in a safe mode.
EMV helps protect you even if your card or your card data is lost or stolen, the technology:
- Makes it difficult for anyone but the rightful owner to use the card
- Protects against the creation of counterfeit cards because dynamic data is only good for a single purchase or use
Q. What is MasterCard Doing?
MasterCard is one of the original founders of the chip card standard known as EMV, short for EuroPay (now part of MasterCard), MasterCard and Visa.
We continue to advance the technology and introduce it to every country around the world . . . allowing you to safely use your MasterCard no matter where you are.
Q. Will this Change The Way I Pay for Things?
A little bit. Rather than swiping your card, you may soon insert it into or tap it against a card reader so the chip on your card and the reader can “talk” and establish a secure connection.
Q. Why Isn’t the U.S. Currently Using Chip Card Technology?
Historically, countries with higher fraud rates switched to chip cards earlier than countries with lower fraud rates.
Q. What will I see as a Cardholder?
First, you will see new card readers or payment terminals in your favorite stores and restaurants. Many of the new readers are already in place, especially if the business caters to travelers from outside the U.S.
Next your bank or credit union will send you a new chip card. Some EMV cards are already available in the U.S. However, the chip cards are provided predominantly on an “at request” basis and, as mentioned, most often to international travelers.
19 Comments
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Very interesting. Thanks for sharing this information. Why is US so far behind? Are US merchants resistant or afraid to cough up the money for new terminals?
1 need more info
2 If this is not ready with enough terminals why are you bothering now?
3 what “other kind of information” will be on the card?
4 will card be subject to gps location?
What happens when I purchase something via the phone or the web with the new cards?
I just received my new “chip and Pin ” Mastercard and am asking if I have to use a “Pin” number for transactions ? thank you VicDemeyern
Hi Victor – great news that you received your new chip card. You should connect with the bank that issued your card for any specific questions related to your account.
My wife and I received chip/magstripe cards from our bank last month. This past Thursday, we stopped in at a Walmart to make a purchase. After swiping the card, we got an error message, but the clerk told us that Walmart had just upgraded their system the day before, so we were able to insert it into the chip reader and complete our first ever chip transaction in the US! The funny thing was we were using the same old POS device. Apparently, we never noticed it had a slot on the side for chip cards.
Also, on Friday, I stopped in at a Target store and noticed they had new chip capable POS terminals, but they were still using the devices as magstripe only.
Hello Bob – We are pleased that you and your wife are beginning to use your new EMV cards. Please come back to the site from time-to-time and tell us how things go as you continue to use the card in new places.
I would like to apply for a world master card that offers the travel insurance up to $7,500
I have looked and looked have not found it,
Thank you,
Dorothy Bennett
Hi Dorothy, travel insurance varies widely by credit cards. It would be best to contact a bank to inquire if their cards carry that benefit. Your best bet is to check with the larger financial institutions. Our World and World Elite cards do provide travel insurance benefits.
In May 2017 we were robbed of two Travel Wallets and a Credit card in Rome. The Travel Wallet is a Debit Card issued by Standard Bank South Africa. Our pins were not in my purse as we had memorized them.
Money was drawn at pharmacies in Rome within a time span of three hours. I did not immediately notice that my bag had been cut open and the purse taken. The credit card was not accessed.
How is it possible for these cards, which I believe to be EMV cards, to be accessed with my pin??
My last sentence was supposed to read: without my pin!!
This is how much I wanted when it comes to credit card. I have a lot always something to learn. I am so glad to read your blog and I appreciate too much. Now I realized that, this thing will change my world.
now I know a lot about chips on credit cards. thank you for sharing information
nice information, thanks for sharing very usefull
What this article doesn’t tell you is that companies can now track your location!
Can GPS technology be embedded into cards to relocate lost or stolen cards?
You state: Chip cards contain the same data and more. I’d like to know what more is please.
how does the chip card make it difficult for someone else to use my card ???? that is inaccurate and not so !!! my friend took my chip card , went into store , purchased $38 worth of goods , no questions asked ! So tell me again how that chip makes it difficult to use another persons card ! Furthermore , stores regularly run my debit card as credit ! Better yet if you tell clerk you for got your pin # they say hit the yellow button then choose credit !!! how does the chip prevent that ??? it does not !!! if someone gets ahold of my debit card , they do not know my pin , but can then run as credit !!!! LOL ! The chip is BS , tell me What its really for !!! Your article is misleading to damn near a total lie !!!