June 20, 2016

Have you been wondering what the push is all about regarding credit cards with chips?  Something that seems so simple sure has taken some getting used to.....we have all felt the affects.


So, what’s the deal?


PCI Compliance, that’s what.  PCI stands for Payment Card Industry.  PCI has implemented a proprietary information security standard for vendors that accept credit cards.  Now, this is in an effort to protect against fraudulent charges.  Not a bad thing.  But, what does this chip do?


The embedded microchip - called an “EMV” for Europay, MasterCard, Visa (the three companies that created the technology standard) — creates a unique signature for each transaction. So, the only information flowing through a merchant's point of sale is a random numerical sequence.  By contrast, the info on your old card’s magnetic strip contained account information and remained constant, making it easier to copy and counterfeit. Basically, the chip keeps hackers from skimming your credit card’s data and populating it to another card to make fraudulent purchases.  


Creating this random numerical sequece can take some time.  So practice your manners and patience, please.  It’s worth the wait.  There are benefits to taking the dip not the swipe. 


Stay tuned for the next DTCI Tips** where we’ll talk about PCI compliance and how it’s effecting businesses processing credit cards.


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