As technology has advanced, thieves have developed the ability to clone magnetic stripe credit cards. The intended card owner rarely knows of this theft and may not realize it until it’s too late. To combat this thievery, many of the big name credit card companies got together and developed the EMV smart credit card.
While these cards have been popular in Europe for years, the United States began adopting EMV cards in 2012. There are two types of EMV credit cards, the chip-and-PIN method and the chip-and-signature method. Let CardPRO Systems fill you in on the ins and outs of this new anti-fraud technology.
Downfall of the Magnetic Stripe
Credit cards have traditionally been made with a magnetic stripe that stores the account information. Thieves began cloning these credit cards and stealing money and identities from their victims. There have been many high-profile instances where thousands of credit cards were compromised as a result of hacking information and stealing credit card information.
EMV cards are designed to be more difficult to clone and steal information. A chip is installed in each card and is read at the point-of-sale for all transactions. While point-of-sale transactions have become safer, online and over the phone payment methods are still vulnerable to theft.
Chip-and-PIN vs. Chip-and-Signature
The two types of EMV cards are chip-and-PIN and chip-and-signature cards. Both types of EMV cards have benefits, but unfortunately, they also have drawbacks.
Chip-and-signature cards are the most common form of EMV cards in the United States. These cards require a signature from the cardholder at the point-of-sale after the card’s chip has been read. Chip-and-signature cards are good at protecting cardholders against counterfeit theft, while they are not nearly as effective as chip-and-PIN cards at lost and stolen credit card theft.
Chip-and-PIN cards, as noted above, are effective at protecting cardholders from lost or stolen credit card theft. This EMV card type is popular in most European countries since lost and stolen theft has begun to rise again in recent years.
If you are in need of a new credit card processing system, CardPRO Systems is here to help. Unlike many other credit card processors, we strive to be 100% transparent and focus on good customer service. You can contact us here or call us at 844.385.2273.