EMV Chip Credit Card Payment System
is a new technology introduced to debit and credit cards to improve security.
EMV stands for “Europay, Mastercard, and Visa” because these are the companies
that aided in the development of the chip. Credit and debit cards will continue
to have magnet strips but will also now have a mini computer inserted in
them. The main difference between the
magnet strip and mini computer is that the magnetic strip was static; by this I
mean the information never changed. Every time you swiped your card the
information stored in the magnetic strip was read and processed. This allowed
for your money to be transferred from the bank to the company. The EMV mini computer creates a new
transaction code for every purchase you make.
The EMV
chip has affected a lot of businesses. With in the last few months businesses
are being forced to upgrade their equipment to support this payment
method. This is a huge added cost for
businesses. Not only do they have to purchase new parts for their cash
registers but they also have to pay for the labor to install the parts. This
has the potential to slow down business sales. It also may make some businesses
seem out of date or unsafe to purchase products from.
The EMV
chip has huge social and personal implications. The main reason this technology
was invented was to help prevent credit card theft. So far the technology seems
to be very successful in doing that. If a thief is able to gain access to your
credit cards information at one sale the information is almost irrelevant
because your credit card will never use the same transaction code again. However,
not everyone has switched to this payment method yet. With in the next few
years, I predict, this technology will be as common as the magnetic strip. This
is going to improve societies security greatly. It is going to reduce the
amount of credit card theft significantly. This will take away the fear of credit
card theft and make your money much safer.
Along with
this making everyone’s money much safer it also benefits an average consumer in
another way. Credit card theft is very unlikely with the EMV chip but if it
were to happen, the majority of the time, the blame is put on the financial institution.
This is amazing news for the consumer. Now their money is safer than it has
ever been and in the rare case that it is stolen the liability is put on the
financial institution, not them.
The EMV
chip is another technological step in improving societies overall safety and
efficiency. Eventually it will be seen as a standard and be used all over the
world.
Video Source: https://www.youtube.com/watch?v=iuh_LF-SQjE
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