The following is a Guest Post from Jessica Kane, professional blogger who focuses on personal finance and other money matters.
What’s Up With Those New Debit Card Chips?
If you have gotten a new debit card lately, you may have noticed that there is a square metallic object gracing the front of it. This is an EMV chip, and it is designed to better secure your financial information each time you make a transaction. In addition to placing your card into a reader before a purchase can be made, you will also have to enter a PIN for added security.
What Is an EMV Chip?
EMV stands for Europay, MasterCard and Visa, and the technology has been used in Europe for several years now. The chip is harder to read compared to the magnetic strip that old credit cards used. Hackers and other thieves figured out how to get into the card readers and get the information that was being transmitted. From there, they could steal credit and debit card numbers to make fraudulent purchases.
Hackers Stole Billions Each Year
In 2013, thieves were able to steal $2 billion by duplicating the information found on a credit or debit card magnetic strip. In 2012, they were able to make $1 billion in unauthorized transactions using information duplicated from legitimate credit and debit card accounts. In the past, if a fraudulent charge was made, the bank was responsible for investigating the charges and issuing refunds if necessary. However, the onus now lies on merchants to pay for any fraudulent purchases made in their stores or through their websites.
What Happens to My Old Cards?
Your old cards should either be cancelled or have already been cancelled by your bank or credit union. This is true even if the card wouldn’t have already expired or if you haven’t reported your card as missing or stolen. Therefore, don’t be alarmed when you get a letter in the mail saying that your card has been deactivated or if you receive a new card in the mail earlier than you expected.
What Happens If I Make Purchases Online?
When you make a purchase online, there is no card reader that you swipe your card through. However, you will still be asked to enter your PIN number if you are using a department store credit or debit card through that store’s site. This may also occur when you use a MasterCard or Visa credit or debit card to make a purchase anywhere on the internet.
What Should I Do If I Have Been the Victim of Fraud?
If you have been the victim of fraud or identity theft, call your card issuer immediately. Additionally, you should put a freeze on your credit reports as well as on the account that you think was compromised. From there, your bank or credit card issuer will investigate the charge and refund your money if it is clear that fraud took place.
Although hackers will always try to get as much information about you as they can, it is good to know that companies are taking your security seriously. Instead of waiting for another breach to occur before taking steps to make transactions safer, you can feel good knowing that EMV chips act as an impenetrable firewall that keeps your personal information secure when you shop.
Jessica Kane is a professional blogger who focuses on personal finance and other money matters. She currently writes for Checkworks.com, where you can get personal checks and business checks.
What’s Up With Those New Debit Card Chips?
