Credit Card Security Chip

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Visa, being one of the biggest multinational company in finance, of course, always keep their service as up-to-date as possible just for the sake of their customers. Providing a credit card with a strengthen security is the example. Seeing how advance the current technology, Visa definitely won’t pass this opportunity. A credit card security chip is provided by Visa to assure their credit cardholders a better security.

Not only Visa, actually, but most of major financial bureaus impose this upgraded security system. This is just in time with how popular frauds are this past decade. Not to mention also all those leaks of information which may or may not are used for wrong-doings. That being said, not only Visa upgraded their own service for their customers, they also tries to minimize and to prevent those wrong acts of fraudsters using this credit card security chip.

How the Credit Card Security Chip Works

You may think that this technology is brand new and fresh. But actually, on some parts of the world, this feature of credit card security chip is rather common. Europe for example, they are more familiar using chip-embedded cards rather than magnetic-striped cards.

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Now, you must have wonder how exactly this credit card security chip works. First, let’s keep the answer of the related question as simple as possible. This chip-embedded card is actually just like those regular plastic debit or credit cards. Their visualization is just the same, except for the microchip that is embedded in them. The microchip is attached on the front side of the card.

With said microchip, the credit card security chip will generate a one-time unique code for each of your transactions. This is certainly a complex system in which is said to be impossible for one to replicate this. Thus, the cardholders will be more assured in using their debit or credit cards for in-store payments. It is as proven by many that in those places who have adopted this microchip system the total occurrence of cards fraud have decrease.

While for a magnetic striped card, the problem is more or less regarding the system of the magnet itself. It is because the data of the magnetic field which is read by the payment processor is static; hence it is only one way or another. It is obviously different from the microchip of credit card security chip which constantly change their code. Thus, the magnetic striped cards will ease someone’s way to lift your private information and copy them to another card. Probably, you have heard about this particular device, a skimmer. Well, this device is extremely handy and easy in stealing your information.

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However, the intriguing part about this service of credit card security chip even with the chip embedded to the card; still, there is a magnetic stripe on the back side of the cards. Visa explains that this is for Visa payWave which functions to provide contactless payments. Don’t worry though, because as Visa claimed, all their cards are secured from unauthorized transactions. The existence of the chip simply offers you another layer of security.