A chip card is a credit or debit card that contains an embedded computer chip and provides increased protection against counterfeit and lost and stolen card fraud. In addition to providing increased security, the chip card also offers a platform for future opportunities, new product and service offerings. The migration to chip card technology represents an evolution of the electronic payments systems designed to make an already safe payments system even more secure. The Canadian payments system will be utilizing the established "EMV" chip standard (Europay MasterCard VISA), which is a proven technology currently in wide use around the world.

Beginning in fall 2007, merchants and cardholders will start to see the introduction of cards, Automated Banking Machines and merchant terminals that feature chip technology, and within three years, it is expected that the majority of Canadians will be able to fully benefit from this new technology.

The complete migration to chip technology will take a number of years, given the vast number of Automated Banking Machines, Point-of-Sale terminals and banking cards across Canada which must be upgraded. Each financial institution has its own timetable in place, so the introduction of chip technology will vary from one participant to another.

To read more about the Chip Card and Time lines, click here to view the PDF