What Are EMV Chip Cards?
EMV (Europay, MasterCard and Visa) credit cards contain small, metallic computer chips that authenticate transactions. The chips will eventually replace the black magnetic strips (often referred to as mag stripes) on the back of current cards, making swiping your card a thing of the past.
The key term here is eventually….both chip cards and the traditional mag stripe cards that we’re all used to will be around simultaneously for quite some time. In fact, there’s not even a chip mandate at this time, and merchants will continue accepting traditional cards for the foreseeable future.
How does this affect me?
- Current cards still work normally. Magnetic stripe cards aren’t going away anytime soon, so even if a merchant can accept EMV cards, you can still use your traditional card virtually everywhere.
- Outstanding fraud protection. The likelihood of fraudulent transactions against your account will be incredibly rare with chip technology.
- Your card will look different. EMV cards will contain a metallic chip on the front.
- Dip, not swipe. Instead of a vertical swipe that we’re used to, EMV card readers require you to “dip” your card. This simply means inserting your card into the reader, where it remains until your transaction is complete.
Why the nationwide shift to chip credit cards?
Chip card technology is being adopted as a measure to prevent credit card skimming fraud. Since implantation, merchants are seeing a decrease in counterfeit transactions by more than 18% according to Visa.
Here’s how: traditional magnetic stripe cards store your unchanging data, including your most sensitive card and personal information. When thieves use card skimmers or obtain card data some other way (e.g. data breaches), they can create counterfeit cards and/or make fraudulent transactions on your behalf.
With EMV credit cards, the chips do not store data. Instead, a different data code is created each time it’s used to make a payment. More importantly, the code has a one-time-only use.
When will the transition to EMV technology be complete?
Because it’s a huge and costly undertaking, it will be a few years before the switch to EMV cards is 100% finished. It makes sense when you think about it: merchants and retailers need to purchase, install and learn how to use EMV-friendly payment terminals. Card issuers need to print new cards for all of their cardholders. And as we mentioned above, since there’s not a mandate in effect, there’s no sense of urgency despite the liability shift.
What to do when you receive your new Arbor Financial Visa chip card?
New Visa debit and credit cards, featuring advanced chip technology, will be reissued to members late September to early October. You can learn more and read our chip card FAQs by clicking here. Your debit card number and PIN will remain the SAME. However, if you have a credit card, although the number will stay the same, the PIN will change and you will receive your new credit card PIN in a separate mailing a few days after your new credit card arrives.
You can start using your new cards as soon as you get them! If you have automatic bill pay linked to either your debit or credit card, this will remain the same, no additional updates are required.
Helpful Chip Card Articles:
Go Chip Card
8 FAQs About EMV Credit Cards