The conversion to chip cards has begun, but you may be wondering what is a chip card? A chip card is simply a debit or credit card that contains an embedded chip. Chip cards are difficult to counterfeit, and have been used throughout the rest of the world for years. Here are some things Community Bank of Oak Park River Forest would like you to know about chip cards.
When can I expect to start using a chip card?
Industry guidelines call for a conversion to chip cards by October 1, 2015. In order to meet this deadline, many banks are now beginning the process of issuing chip cards. Also, retailers need to convert to chip-enabled terminals in order for you to use your chip card.
What is the process for using a chip card?
You will simply insert your chip card into the chip-enabled terminal. Your card will remain in the terminal until the transaction is complete. Once complete, you can remove your card, it is that simple!
What if the terminal doesn’t accept chip cards and only accepts traditional cards with magnetic stripes on the back?
Chip cards will continue to have traditional magnetic stripes, which means you can use them at any terminal, even if they are not chip-enabled. In this case you would simply swipe your card as usual.
How does a chip card work?
When using your chip card, the chip encrypts information to determine if the card is authentic. The chip then creates a unique transaction code for each transaction, which makes it difficult to counterfeit or copy. Chip cards have shown to reduce fraud by 80%.
What are other names for chip cards?
While Community Bank commonly refers to them as chip cards, they are also called EMV cards, smart cards, smart-chip cards, chip-enabled smart cards, or chip-and-choice cards. Take your pick, they are all one and the same.
Can chip cards be used for everyday purchases?
Yes, and some merchants are already in the process of converting to chip-enabled terminals. But as was mentioned, your chip card also has a magnetic stripe for merchants who have not yet transitioned to the new technology. Your chip card may also be used at ATMs.
What countries have adopted chip technology?
Initially adopted two decades ago worldwide, chip technology is used in more than 130 countries, including Canada and Mexico. When travelling abroad however, we recommend you always carry a backup form of payment.
Will chip cards prevent all fraud from happening?
Fraudsters will always be looking for ways to commit fraud, but the good news is that the technology has proven to drastically diminish fraud because it is harder for criminals to reproduce cards – the bulk of current fraudulent activity – and to profit from what they steal.
If you have questions about chip cards, contact Community Bank at 708-660-1000, or visit our website at www.cboprf.com. Community Bank has two locations: 1001 Lake Street, Oak Park and 7777 Lake Street, River Forest. Member FDIC | Equal Housing Lender