People often use debit and credit cards to make transactions. Modifications were made to these cards a few years ago. EMV chips were added to them to make transactions safe. Earlier payment terminals read the credit cards through magnetic stripes for completing transactions. But now, the chip made it possible to make transactions without swiping.
Might Help You: Credit Card Thickness In Mm
Table of Contents
What’s the Difference Between Chip And Swipe? Chip vs Swipe
As far as chip vs swipe is concerned, there lies a difference between the two on the security level. Magnetic stripes can lead to troublesome situations as the information is revealed to all card readers.
Fraudulent activities can happen through magnetic stripes as it is easy to intercept and replicate the information stored there. However, the EMV chip technology has decreased the chances of fraudulent activities. It uses complex encryption to keep data safe.
For people, the difference between making purchases through a chip versus a swipe is in the way people use them. For chip vs swipe, choose to use a chip card instead of a traditional credit card. If you want to use a Chip Card, you can put your card into the card reader. Leave the card there till your transaction is done.
But, with the magnetic stripe, you can do a one-time swipe, and you can then follow the instructions given.
Might Help You: Most Valuable Tips On How To Use A Credit Card For Beginners
Why Are EMV Cards More Secure?
Chip card security is a recent standard of security related to a credit card. This standard is popularly called EMV.
In this technology, the credit card ISO has a microchip. This microchip prevents fraudulent activities and protects the buyers by making their transactions safe and secure.
EMV cards facilitate more secure transactions. The reasons behind considering EMV cards as more secure than traditional credit cards are as follows:
- EMV cards are specially designed to prevent fraudulent activities.
The design of EMV cards is such that they can easily prevent frauds from making fraudulent transactions which may happen if someone swipes a credit card at the payment terminal. The rate of fraudulent transactions has reduced in countries that have adopted this EMV technology.
- It is difficult to clone Chip cards.
On swiping magnetic stripes, the magnetic fields are read, and the processor matches them with the information of the bank account. This data is static, and hence, frauds can easily take out the data and clone it.
It is not possible in the case of EMV cards as the data is continuously changing. Hence, the fraudsters can’t extract the information, and it is really difficult to clone an EMV card. To carry out fraudulent transactions, the fraudster has to get to the chip circuit and make necessary modifications to get hold of the information.
3. Pin and Credit credit cards have a sophisticated system of encryption.
The traditional Magnetic-stripe cards broadcast the bank information into payment terminals while swiping. The Stand and Square Reader encrypts the information as soon as it is received.
The chip has a different system of encryption built in it that the EMV cards use.
Once it’s dipped, it secretly communicates with the payment terminal to ensure that it’s you who is making the transaction.
So, when it comes to chip vs swipe, a chip is always more secure than a swipe.
Might Help You: Is It Safe To Apply For A Credit Card Online
What Is A Contactless Credit card ?
Contactless credit cards have been in use in several countries for many years. It has also gained immense popularity in the USA. The common question that may arise in the minds of people is – “ what are contactless cards?”
Contactless credit cards use RFID technology to allow the users to tap or hover cards over card terminals to process transactions. There is the emission of electromagnetic waves of short-range from the card. These waves contain all necessary information about the credit card captured by the point-of-sale system for the completion of the transaction.
Contactless cards look the same as normal cards. However, contactless payments are way faster than other modes of payment. You may also go for contactless payments if credit cards are connected to smartwatches and smartphones.
Use contactless credit cards to make the process of making transactions safe.
Might Help You: Best Credit Card For Retired People
Can You Swipe A Chip Card ?
Most people have gotten into the habit of using credit cards with chips. Banks also have popularized the use of EMV cards as they are more secure than traditional credit cards if used properly.
Yes, it is possible to swipe a chip card, but it may not be safe to swipe a credit card.
You may swipe the chip card instead of putting it in a slot. However, in that case, the merchant has to pay for fraudulent transactions. The bank will take no measure to cover the charge.
However, several retailers want to ensure that the credit cards of the readers work properly by looking for cards certified by credit card companies.
Some people also have to wait for about six months to have their cards certified. It’s better to pay in cash if you have approached a checkout without inserting the chip. Chip cards are safer for businesses as well as for customers. Swiping chip cards instead of inserting them into the slot may be dangerous. It may lead to a huge monetary loss.
Might Help You: Best Business Credit Cards For Construction
Final Words !
Security provided by EMV chips is high. Transactions processed through EMV chips are more secure than those done using payment terminals. It is the safest to complete transactions using chips rather than swiping.
