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Credit Card Changes Oct 1st |What you need to know?

 

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Last Friday, I ventured out to a few stores and I was quite surprised by the number of stores that were not ready for the new credit card changes.  In case you haven’t heard, there is an expected change from the magnetic credit card, to EMV computer chip cards that went into effect on October 1st.   The new card will be equipped with a small EMV computer chip (a small metallic in-front the new card) with an intention of making it hard to counterfeit. Instead of the normal way the card is striped through the terminal, the new card will be inserted into the payment device, and will be left in place until the entire transaction is finished.

I wasn’t surprised to learn that despite being ahead in technology most credit card fraud happens in the United States,  and there has been an urgent need for a change over.

So here are some important things to note while you are out shopping and putting that new EMV card to use.

  1.  The EMV cards system was created by Europay, MasterCard and Visa, as a way of adding more security to the transactions
  2. The card is expected the prevent fraud, unlike in the normal magnetic card, where information never changes.  The EMV card will be generating random codes for every transaction. Making it hard for hackers to use stolen information to duplicate the card.
  3.  Most of the cards will now use a signature instead of the PIN number.
  4.  If you still don’t have the new card from  your bank or credit card company, you need not to worry as the new EMV terminal will accept the old magnet cards
  5.  In an event where the retailer does not have the new chip reader, you will have to use the old magnetic one to make the payment. In case of fraud during the transaction the retailer will have to bear the cost, due to failure of not having the upgraded system. Previously it was the bank that supplemented the cost associated with fraud.
  6. The new EMV technology is meant to protect you at the store terminals, though if you happen to lose your card or someone steal the card from you. They can still use it. Please take extra care to prevent your cards from being stolen by being aware of your belongings and surroundings.

 

Learn more about securing your card and the changes

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