To understand what the chip is, you must first understand what it’s for. The chip or EMV (Europay, MasterCard, Visa) was designed to stop hackers from stealing your credit card information. When you swipe your traditional credit card, it will read the magnetic strip. That strip is preloaded with a lot of very valuable information. Hackers can get ever piece of it. When you insert your card with the chip, the only information the system reads is specific for that transaction. If a hacker got that information, they would only have one transaction code, which is essentially worthless information. This increases your data security tremendously.
Since the invention of EMV, hacking has dropped dramatically. While other countries have been quicker to adopt the technology, in the past ten years, credit card fraud has doubled in the US. Hence our need to move forward. Indeed, EMV technology is predicted to herald a steep decline in the scourge of hacking and other forms of credit card fraud in the USA.
As many frustrated people know, the chip may take longer to do a physical transaction. You have to leave it in the machine for a considerable amount of time, longer than just swiping your credit card. However, the benefits are so great that the wait time is a small price to pay for theincrease in security.
Upgrading to the chip is very easy. Simply ask your credit card company for a card with an EMV chip. They’re more than happy to accommodate.
If you are a merchant and looking to be PCI compliant, upgrading to a terminal that has an EMV reader can be costly,usually priced between $500 and $1000, out of pocket. There is a way around that however. You can find a merchant services provider that offers free equipment. There are many of them out there such as Progressive Payment Solutions. It is a quick,easy and best of all, economical way of staying up to date.