The card’s small microprocessor chip provides an extra layer of data security that magnetic stripes alone do not. This chip protects consumers by:
- Safeguarding card data through encryption
- Authenticating cards during each chip-reader transaction
- Creating a unique, one-time code for each transaction which can never be re-used (this makes counterfeiting EMV cards extremely difficult)
The new EMV payment stations are more secure, as well, requiring either a Personal Identification Number (PIN) or signature for verification. And by inserting your card instead of swiping, you are more likely to have possession of it throughout a transaction – limiting fraud by cashiers.
These upgrades complement
steps that KeyPoint already takes to protect your data, including extensive fraud monitoring and blocking of compromised cards.
EMV chips do not curb all forms of theft, however. While the chips reduce counterfeiting from in-person purchases, fraud when the card is not present is on the rise – mainly through internet and telephone scams.
Read more about avoiding this form of identity theft.