How The Chip Card Changed Credit Card Security

A chip card only holds the same amount of personal data that was always stored on the older style card and that is: your cardholder name, card number and expiry date.  No other personal data is embedded into the chip.

Benefits of a chip credit card

Being so difficult to copy details from a chip credit card makes the use of these cards more desirable for credit card holders.

Chip credit cards are being introduced worldwide as they have proven to be a very effective method in preventing fraud.  If you are travelling overseas it is strongly recommended that you make sure you are carrying a chip credit card because this will give you the best security with your card.

When using your credit card overseas you will find that some countries do allow you to use your signature for transaction verification, but there are some countries who will only accept transactions when a PIN is used.

For this reason your best credit card security is to have a chip credit card with a PIN.

Chip credit card security

What makes it so difficult to copy the data from a chip card is the fact that chip credit cards can store encrypted confidential information.  A chip transaction enables a unique transaction and because each transaction does have its own ID, it makes counterfeit production of any details much more difficult.

It is also impossible for anyone to use a contactless scanner to download details on an ANZ security chip credit card.

How to use a chip credit card

The chip credit card can be used the same way as the previous magnetic card, by swiping it through a terminal, but many merchants are changing over to the new style terminal where you insert your card into the bottom of the terminal and leave the card there for the entirety of the transaction.   As for the signing or use of a PIN that will still be the same as before.

At this stage there are no immediate plans to require PIN use when using a chip credit card, but when travelling overseas it would be to your advantage to definitely have a PIN for your card.

Chip credit cards can be used at ATM’s the same as you would have used your older card in the past.  There have been no changes in the way a chip card works for the consumer.

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