A chip card, also known as an EMV card (named after Europay, Mastercard, and Visa), has an embedded microchip that enhances security for transactions compared to the traditional magnetic stripe cards. The chip on the card generates a unique code for each transaction, which is harder to duplicate or replicate, making it more secure against fraud.
Here’s how it works:
- Authentication: When you insert the chip card into a payment terminal, the chip communicates with the terminal to authenticate the card. The chip generates a one-time transaction code that validates the purchase.
- Encryption: The chip encrypts sensitive information, protecting it from being intercepted by unauthorized parties. This makes it much harder for thieves to access your card data.
- Compatibility: Mostly also equipped with a magnetic stripe as a fallback option, so they can still be used in older terminals that don’t support chip technology.
Summary: It helps secure your transactions by making it nearly impossible for anyone to duplicate your card information for unauthorized purchases.
- debit card chip card
- credit card chip
- magnetic chip card
- ATM chip card
- smart card
- iCLASS dp card