The new norm for businesses and consumers are chip enabled credit cards. The cards look the same, but they have a small metallic chip that is called an EMV this stands for Europay, MasterCard, Visa.
The goal of the chip is impede fraud and consumers personal information being shared.
Here is what businesses and consumers need to know about the shift.
Magnetic Stripe Cards can still be used
There is a threat tat all non-EMV payment terminals are going to get bugged so that fraudsters can steal credit card information, as these terminals will have the least resistance.
Consumers will then need to be aware of any store that forces them to swipe their cards instead of digging the chip.
It Has Been Done
The UK made the switch to EMV and since 2005 it has been recorded that fraud has decreased by 63 %. However, before the decrease, fraud did hit a peak in 2008.
This shows that consumers will not be automatically safe, but once the majority of stores and consumers are EMV ready, doe to their limitations there will be a rise in credit card fraud in the short term.
These new cards do have their own set of limitations.
EMV chips will stop a thief from making a copy of your credit card; it won’t stop them from stealing your online payment credentials.
This means that consumers will not be protected with online purchases as the consumer is only protected in face to face transactions.
When you shop online you still need to use a reputable site even with an EMV.