The new EMV chip
debit and credit cards are here. That being said, how should you change how you
used your new EMV chip for transactions? The security value of these new cards
is only realized when the EMV card is being used by an EMV card reader by the
merchant accepting the card for payment. Much of the counterfeit card fraud
that has taken place over the past few years occurred because of a card swipe
where the data was stolen at some point by hackers. Cards that are swiped for
the authorization do NOT transmit that card information in the most secure
environment. There are many merchants and retailers out there right now who
have the EMV chip reader at their point-of-sale terminals but do not use them
because they don’t have the technology implemented yet. So what does that mean?
They ask you to swipe your EMV chip card for your transaction. This is
defeating the purpose of the technology and expense of issuing EMV chip debit
and credit cards. Merchants who utilize the EMV chip reader at the
point-of-sale are doing their best to protect your personal card information.
As consumers and holders of these EMV chip cards, it is in our best interest to
transact business with those merchants and retailers who have functioning EMV chip
card readers.
True, the
liability does shift from the issuer (credit union in this case) to the
merchant/retailer when the EMV chip reader technology is not being utilized.
Does that really mean much to you though when your money has been taken out of
your account from a counterfeit card transaction from a location five states
away? It is an incredible inconvenience to have your card information hacked
and money stolen. Initially, your money is gone and you don’t have a working
debit or credit card anymore.
Consumers need
to put pressure on the merchants and retailers to implement the EMV card
readers at their point-of-sale terminals. Does the authorization process take
slightly longer than a swiped card transaction? Yes, but that time is secure
time and would greatly reduce the threat of your money being stolen at some
point in the future. Ask the store manager why they aren’t doing all they can
do to keep your card information as safe as possible. If you have two retailers
and one has an operational EMV card reader and the other doesn’t, you would be
wise to choose the first one.
So far in
2016, North Alabama Educators Credit Union members have seen just over $80,000
in fraudulent transactions due to counterfeited debit cards on data that was
stolen from the merchant card swipe process. Let’s get away from the card swipe
process at retailers and reduce card fraud for everyone!
