Chip Card Technology is Coming
Chip card technology or “EMV”, which stands for Europay, MasterCard and Visa, increases the security of card-present transactions by requiring communication between a microchip embedded in the card and a chip reader in a chip-enabled terminal. Chip card technology validates the legitimacy of the card being used in card-present transactions only. Therefore, it does not apply to Card Not Present (CNP) scenarios. So online transactions will not receive the same type of protection.
If you are a merchant processing credit cards, begin preparing for the transition NOW. It is in each merchant’s best interest to begin using chip-enabled terminals and training customer-facing staff on the processes involving chip cards. Beginning October 1, 2015, if you are not using a chip-enabled terminal, the liability shift will hold you responsible for some counterfeit card fraud.
If you are a user of credit and/or debit cards, you may already be receiving your chip embedded cards. Post Oak Bank will begin issuing chip-enabled debit cards during the 4th quarter of 2015. You will receive your new card prior to the expiration of your current card. Your current card will be valid until it expires. When using your chip-embedded card at a chip-enabled terminal instead of swiping the card you will insert the card into a terminal slot and it will remain there for the duration of the transaction. If the terminal is not chip-enabled or you do not have a chip-embedded debit card, you will swipe the card as usual.
Post Oak Bank, N.A. will continue to update you on the conversion to chip card technology, including information about receiving a new card with the embedded microchip as the October 1st date gets closer.
If you have questions regarding chip card technology or upgrading your terminal, please click on Chip Card FAQs or contact a member of Treasury at firstname.lastname@example.org.