An ATM Chip Card is a bank-issued card that contains an embedded microchip, enhancing the security and functionality of traditional ATM or debit cards. This chip, often referred to as an EMV chip (for Europay, MasterCard, and Visa, the consortium that developed the standard), encrypts data to protect against fraud and unauthorized access.
Key features and components of an ATM chip card:
- Embedded Microchip: Chip on the card is a small, integrated circuit that securely stores and processes data. Each transaction generates a unique code that is difficult to duplicate, making it more secure than magnetic stripe cards.
- Magnetic Stripe: Various ATM chip cards still feature a magnetic stripe for backward compatibility with older ATMs and card readers that may not support chip technology.
- PIN Authentication: ATM chip cards typically require a PIN (Personal Identification Number) for transactions, providing an extra layer of security.
- Contact or Contactless Use: Chip cards can be used by inserting them into a card reader (contact) or by tapping near a contactless reader (contactless), depending on the card’s design and the reader’s capabilities.
- Enhanced Fraud Protection: The chip technology reduces the risk of card skimming, where magnetic stripe data can be copied and used for unauthorized transactions. The chip is less vulnerable to duplication.
All ATM chip cards are part of a global shift toward EMV standards, improving transaction security across ATMs, point-of-sale terminals, and online payments.
- What Is a Chip Card?
-
Chip cards operate with payment acceptance devices that have been certified for compliance with EMV chip-and-PIN standards. In the course of a transaction, the customer inserts the payment card into the terminal, where the chip and the card reader engage in communication to verify the transaction’s authenticity.
