• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Money Management
    • Debt Reduction
    • Credit
    • Mortgages
    • Mutual Funds
    • Tax Strategies
    • Loans
  • Budgets
    • Saving Money
    • Income
  • Banking
    • Checking Accounts
    • Check Writing
    • Fraud
    • History
  • Entrepreneurs
    • Entrepreneur Interviews
    • Money Making Ideas
    • 3D Printing
  • Resources
  • Retirement
  • About
    • Privacy Policy

Personal Finance Blog

Tips And Stories To Help You With Managing Money

  • Privacy Policy
  • Saving Money In 2018
You are here: Home / Archives for Banking / EMV Cards

EMV Cards

EMV Cardholders Face Challenges

January 3, 2016 By Twila Van Leer

http://i.zemanta.com/363507042_150_150.jpg
If you don’t yet know what EMV means, you need to find out. As of Oct. 1, there were big changes in the world of credit and debit card use, and shopping as you knew it is becoming a thing of the past.

EMV is the new acronym incorporating Europay, MasterCard and Visa. It designates a new type of credit or debit card, one that has a small chip embedded that takes the place of a magnetic strip for identifying the cardholder. Credit card data is stored on an integrated circuit through the chip. A purchaser must put his card in a reader, which applies a one-time code to the transaction. The process is expected to help stymie would-be fraudsters.

The chip is a response to the gigantic card breaches that occurred in some of the country’s largest merchants in recent years. Billions of dollars in losses are plenty of impetus for trying to curb unhealthy fraud.

The chip has been in use in many other countries for some time and it is deemed very efficient in preventing counterfeit fraud, which accounts for about two-thirds of fraud that occurs in stores. It isn’t the silver bullet that will bring an end to all fraud that takes place in the commercial world, but it is one powerful weapon in the battle. Experts are hard at work on other measures, such as tokenization, that will be applied as they become practical.

But despite the fact that the Oct. 1 deadline shifts blame for fraud to the banks and merchants who failed to incorporate the EMV technology by that date, the transition is proving more difficult than was expected. Just over half of American cardholders had received the new chip-embedded cards by the deadline. Relatively few of them have been educated about how the new technology works. According to surveys, 68 percent of those who have received new cards have no idea what it’s all about.

On the other side of the counter, thousands of merchants lack the equipment needed to read the new cards. Clerks and others expected to use the equipment are not all trained in the technology.

EMV is a giant step forward toward reducing fraud, but only if consumers, card issuers and merchants all get on board to make the new chipped cards effective.

As a consumer, what can you do? If your financial institution hasn’t issued you new chipped cards, ask why. And pay attention to the information you are receiving that will make you a part of the new shopping mode. Pressure the merchants with whom you deal to step up to the new technology and then be patient as it comes on line. (Keep in mind that getting the new equipment hasn’t always been easy for merchants. Small businessmen, in particular, have faced challenges in preparing to make the changes the chipped cards require. This is new territory for everyone involved. It changes the way clerks and managers interact with customers, according to those on the selling side of things.) But making it work is to everyone’s advantage.

Of course, the proof will be in the pudding. If the expectation that chips will make a big dent in fraud doesn’t pan out, expect other approaches.

Related articles across the web

  • ‘Smart chip’ debit cards transition going slowly

    Filed Under: Banking, EMV Cards Tagged With: credit cards

    New Credit Cards Cause Hassles For Some

    October 28, 2015 By Twila Van Leer

    EMV credit cards are being accepted at over 78,000 merchants.
    EMV credit cards are being accepted at over 78,000 merchants.
    The rapid spread of new credit and debit cards containing new chip technology is causing all kinds of problems for companies that charge cards on a subscription basis.

    Subscription based companies such as video and music streaming companies, dating services, gyms and many others, are facing serious challenges as millions of the new chip-embedded cards go into use across the country.

    Netflix, for instance, reported recently that it lost a large number of accounts during the three-month period that ended in September. Many of the customers who cancelled were not aware that with the new replacement cards, they must update their information to allow the merchant to automatically withdraw payments.

    As the new cards go into service, in many instances the card number is changed. Or the number is okay, but the expiration date has been changed. That all wreaks havoc for the companies that have benefited from automatic withdrawals in the past. Payments often won’t go through if the card’s expiration date has changed.

    A San Francisco company that manages bill collection for more than 1,900 subscription businesses reports that it has seen an increase in the number of transactions declined recently.

    Bumps in the financial services that deal with these businesses are caused by any irregularities in the marketplace. The data breaches in big retailers, such as the recent Home Depot debacle, for instance, threw them into disarray because thousands of those who shop the home improvement store had to get new cars.

    Dating websites such as Match.com and OkCupid also felt the effect of credit cards that were not updated. IAC/InterActive Corp, parent company for the dating services, lost some $5 million in earnings because of the problems.

    Although the new chip technology is expected in time to make huge dents in the costly fraud that has plagued the card services, there are obvious downsides to the switch that will require resolution as the technology becomes widespread.

    Related articles across the web

    • New credit card chips help prevent fraud
    • 4 Ways Chip Credit Cards Make Life Easier
    • Should You Upgrade Your Credit Card Processing? Three Questions To Ask About EMV Ugprades.
    • Six out of 10 U.S. Consumers With Credit Cards Are Not Ready For EMV, New Survey Finds
    • Why the Pending U.S. EMV Liability Shift Deadline is Almost Meaningless

      Filed Under: EMV Cards Tagged With: credit cards, debit cards, EMV Technology

      Stay Wary Of Fraud As Chip Cards Become Common

      October 26, 2015 By Twila Van Leer

      credit-card-fraudThe race to protect American consumers from fraud and identity theft by the advent of cards with chips embedded in them is expected to work – to a degree. But the fraudsters are on the job, too, looking for ways to get around the new technology.

      The new “smart cards” feature a chip that encrypts every transaction, making it much more difficult for people looking for information that aids them in their fraudulent aims. Americans are receiving the new cards from the companies that issue their credit and debit cards. The switch is going more slowly than economists had hoped, but the number of chip cards in use is expanding. Part of the problem lies in the fact that merchants have not put the necessary card-reading technology in place. Over time, however, the chipped cards will become the norm.

      But in case you have new chip cards and are feeling invulnerable to fraud, hold on. Those who would like to steal your information are already in action. They are sending out emails or text messages that purport to be from the financial institution sponsoring the cards. The messages say the consumer needs to provide information through a link or by responding to the message in anticipation of receiving a new card.

      If you receive such a communication addressed to “Dear Cardholder,” recognize it as an attempt to steal your information. Contact your credit card company or bank and confirm that the message is legitimate before you provide any information.

      The smart card technology is expected to greatly reduce credit card fraud, but there are chinks in the system. In the United Kingdom, which initiated the chip approach in 2004, credit card theft has decreased by 75 percent, but the fraudsters have moved more aggressively into online purchases and ATM card skimming.

      Be sure you are using a secure website for online payments, keep a paper record of transactions and be alert for any suspicious activity, the experts advise. An informed consumer is definitely the fraud perpetrator’s worst enemy. No matter how sophisticated the efforts to protect consumers, there will always be a need for caution.

      Related articles across the web

      • 4 Ways Chip Credit Cards Make Life Easier
      • What you need to know about new computer chip credit, debit cards
      • How the October 1 change in credit card technology will make your money safer

      Filed Under: EMV Cards Tagged With: EMV Cards

      Primary Sidebar

      Personal Finance Articles

      • Make Saving A Priority
      • Review Your Home-Insurance Risks
      • Lowest Air Fare? Try August 28
      • Hackers Targeting Bitcoins
      • Keep Your Emergency Fund Intact

      Save At Walmart

      Search

      Personal Finance Education

      Investing Education from Morningstar.

      As Seen On Intuit

      Intuit.com has ranked Coolchecks.net #4 out of 10 of the best blogs to help you save money. We hope to help you become more aware of your own financial situation and strive to improve it.

      Featured On Mint.com – July 2014

      Mint Interview

      Categories

      • Banking
        • Check Writing
        • Checking Accounts
        • Credit Cards
        • EMV Cards
        • Fees
        • Fraud
        • History
        • Student Loans
      • Best Of The Web
      • Budgets
        • Emergency Fund
        • Grocery Shopping
        • Saving Money
        • Spending Habits
      • Business
        • 3D Printing
        • Bankruptcy
        • Business Advertising
        • Business Development
        • Business Plans
        • Corportate Lessons
        • Data Mining
        • Legal Issues
        • Merchants
        • SEC
        • Security
        • Small Business Startups
      • Consumer Alerts
      • Cryptocurrency
      • Cutting Costs
      • Employment
        • best places to work
        • Careers
        • Interviews
        • Job Search
        • Top CEOs
        • Wages
      • Entrepreneurs
        • Attitudes
        • Entrepreneur Interviews
      • Featured
      • Finance
        • Automobiles
        • Credit Ratings
        • Education
        • Financial Planners
        • Foreclosures
        • Homes
        • Insurance
        • Investing
        • Mortgages
        • Personal Finance
        • Renting
        • Term Deposits
        • Travel
        • Work
      • Fraud
      • Government
      • Holidays
        • Christmas
        • Halloween
      • Internet
        • Bitcoin
        • Blogging Tips
        • Blogs, RSS and Podcasting
        • Databases
        • Facebook
        • Influence
        • marketing
        • Twitter
        • Website Reviews
        • WordPress
          • Key Words
      • Investing Basics
        • Hedge Funds
        • Investing
        • Mutual Funds
      • Life
        • Aging
        • Just For Fun
          • Punahou Alumni Corner
        • Millennials
        • Personal Health
      • Money Making Ideas
        • Affiliate Programs
        • Craigslist
        • Ebay
      • Money Management
        • Bankruptcies
        • Building Wealth
        • Child Care Costs
        • Christmas Shopping
        • Credit
          • Free Credit Report
        • Debit Cards
        • Debt
        • Debt Reduction
        • Health Insurance
        • Income
        • Inheritance
        • Interest Rates
        • Loans
        • Mortgages
        • New Years Resolutions
        • Retirement
        • Shopping Tips
        • Tax Strategies
        • Your Stories
      • Retirement
      • Self Improvement
        • Time Management
        • Work Habits
      • Shopping
        • Coupons
        • Online Shopping
      • Social Security
      • Tax Tips
      • Taxes
      • Technology
      • Trade
      • Uncategorized
      • Wealth

      Best of Personal Finance Blogs

      Best of BuyerZone Business Finance Blog Recipient

      Personal Finance Sites We Recommend

      Get personal finance advice from the people behind the top money blogs, including Wise Bread, The Simple Dollar, Mint and Nerd Wallet.

      Copyright © 2025 ·Metro Pro · Genesis Framework by StudioPress · WordPress · Log in