VISA, MASTERCARD & INTERAC ARE MOVING TO CHIP ENABLED CARDS by 2010
Chip-enabled credit and debit cards are being issued across Canada and will see a gradual increase in distribution over the next year. VISA and Master Card have committed to a mass distribution of chip cards in the market by 2010. Interac has also established migration mandates with Automated Banking Machine (ABM) and point-of-sale (POS) conversion starting in 2010.
The positive Impact of chip technology on your business.
Enhanced Security: Chip technology is virtually impossible to duplicate, increasing consumers’ confidence in the payment system, while decreasing your fraud management costs
Innovation: Chip technology will provide a platform for new product and service offerings, allowing you to keep pace with your competitors’ card payment technologies.
Is upgrading to a chip a big project ?
No, MONEX terminals are already chip compliant and that means there is nothing you need to do
What is chip card?
A plastic payment card (debit/credit) that has microchip technology, that stores information in a secure encrypted format.
How will it work?
Instead of the current signature process, cardholders enter a PIN (personal identification number) to authorize the transaction.
What is actually on the chip?
The microchip stores cardholder information, such as the cardholder’s account number.
What is EMV?
The established international standard for chip cards and terminals was developed by Europay, Master Card and Visa (EMV) to ensure worldwide interoperability. EMV defines how debit and credit payment applications work. In February 2009, American Express (Amex) became the fourth owner/member of EMV Co.
What are the benefits of the Chip Card to consumers?
Chip cards and chip terminals work together to ensure a highly secure transaction by validating the card and the cardholder via a PIN. The computer chip makes cards more difficult to copy, reducing counterfeit fraud. Chip credit and debit cards make a secure payment system even more secure.
Why is the industry Moving to Chip?
The move to chip technology is the latest innovation in the rapidly changing payments environment. The move demonstrates the industry’s efforts to prevent counterfeit and lost and stolen fraud and to further secure Canadian electronic payments.
What about cards with a magnetic stripe?
Chip terminals will recognize both chip and magnetic stripe cards. In non-chip enabled terminals, cards will be swiped and a signature will continue to be required for credit card transactions and a Pin for debit transactions. Magnetic stripe will co-exist with chip card technology to allow consumers to user their cards at non-chip enabled terminals.
