Download What are Chip cards? What are the benefits of a Chip card? How do

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What are Chip cards?
Chip cards have an actual embedded microchip in the card. Chip cards offer advanced security
for in-store payments by making every transaction unique. Chip cards also have the normal
magnetic strip on the back for merchants that do not have a chip-ready terminal.
What are the benefits of a Chip card?
Chips cards greatly reduce the risk of counterfeit cards and fraudulent transactions. The
embedded microchip contains encrypted information that makes it extremely difficult to
counterfeit. The Chip creates a one-time code for each transaction that is unique and cannot
be duplicated.
How do I use a Chip card?
A Chip card looks just like a traditional card with an added microchip. To process a transaction,
you will insert the card facing up into the terminal rather than swiping the card. Provide your
signature or PIN as prompted. Some transactions may not require either due to limits set by the
merchant. The card remains in the terminal until the transaction is approved and then you
remove the card. This process takes a little bit longer than swiping the card, so make sure the
card is left in the terminal until machine completes the transaction.
How does Chip technology actually work?
The embedded chip communicates with the terminal to determine if you card is authentic.
Depending on security preferences by your financial institution, and the merchant’s security
settings, you will be prompted to either enter a PIN number or use your signature to complete
the transaction.
Where can I use a chip card?
You can use your chip anywhere MasterCard is accepted. If the merchant’s terminal is not chipenabled, you will swipe the card using the magnetic strip to complete the transaction. For
online transactions, mail order, and telephone orders, you will use your card like you have in
the past. The chip cannot be used for these types of purchases.
4/2016 EBD
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How does a Chip card work at an ATM?
Insert and remove your card as normal. If they ATM terminal is chip-enabled, it will prompt you
to insert the card again and leave it inserted. The ATM will hold your card until transaction is
complete. Do not remove the card. ATM will notify you to remove the card when done. Don’t
forget to grab the card!
At some ATM terminals, the card is not visible once inserted. This type of ATM will
automatically recognize the chip on your card. The card will not be returned until the
transaction is complete. Remember to take your card!
Are chip cards new?
Chip cards are relatively new for the United States, but other countries have used them for
many years. In some foreign countries, especially in Europe, chip cards have been successful in
reducing fraud.
4/2016 EBD