Chip credit cards, also known as EMV (Europay, Mastercard and Visa) cards, more securely store and transmit data using a microprocessor inside the card, as an alternative to using a magnetic strip. The EMV cards encrypt the data when making transactions. Although consumers may not care whether they dip, tap, or swipe, their credit cards, using the chips on their cards by dipping or tapping better protects against fraud.
Whether you dip, tap, or swipe, here's some important information to know about your chip credit card.
What does an EMV credit card do?
The chip embedded inside an EMV card creates a unique transaction code every time it's used. This special security feature helps prevent card counterfeiting, because it makes it more difficult for criminals to illegally collect credit card numbers and security codes during transactions.
How does the EMV chip work?
When a consumer dips or taps an EMV card, a tiny microprocessor inside the card transmits credit card payment information to the card issuer. That exchange verifies the credit card is authentic and that the card holder’s account balance will allow for the transaction. It also creates the unique transaction data. Merchants need a special EMV chip card reader to accept EMV cards, because chip card transactions are different and considerably more complex than magnetic strip transactions.
Is EMV a new credit card technology?
No. Credit card chip technology has been in use in Europe and other parts of the world since the 1990s.
What other payment options do I have if I don't have a credit card chip?
You may still be able to use a credit card with a magnetic strip if you don't have a chip-embedded card, since EMV terminals also accept swipes from cards with magnetic strips. If your credit card issuer has not yet upgraded your card and you want to adapt to newer technology, there is another option: You may also be able to use a digital wallet.
A digital wallet stores credit card information in an app on your smartphone. At checkout, use the app to bring up the card you want to use, and then tap your phone on the pad at the register. This may reduce your need to present a physical card.
Whether you use a chip card, a magnetic strip card, or a digital wallet, consumers have more payment transaction options than ever before. With more than 80 countries now using EMV technology, travelers can feel more confident using chip cards overseas and at home.
Disclosure: This article is for educational purposes. It is not intended to provide legal, investment, or financial advice and is not a substitute for professional advice. It does not indicate the availability of any Citi product or service. For advice about your specific circumstances, you should consult a qualified professional.
