New Technology. New Questions.
With the added protection of chip card technology, Park Community is doing its part to protect your card against fraud, one chip at a time. While the technology is different, using your card is simple. If the merchant has a chip card reader, insert the card, wait for your transaction to process, follow the prompts, and remove the card when you’re finished. If they only have the magnetic stripe reader, swipe your card as usual.
Here are some common questions regarding the new chip cards. If you have additional questions, please contact our eBranch at 502.968.3681.
What is a chip card?
Chip cards are credit and debit cards that are embedded with small electronic chips. They have features to help protect you against fraud, and they’re difficult to counterfeit. When you use a chip card, a card reader can interact with the chip instead of reading information off a magnetic stripe, which helps keep your information secure.
Chip cards are also sometimes referred to as “EMV” cards. EMV is an international standard that both card issuers and retailers use to make chip cards work.
What are the benefits of chip cards?
The biggest benefit of chip cards is the reduction in card fraud resulting from counterfeit cards.
Why are chip cards more secure than traditional cards?
The small, metallic square you’ll see on new cards is actually a computer chip. The magnetic stripes on traditional credit and debit cards contain unchanging data. Whoever accesses that data gains the sensitive card and cardholder information necessary to make purchases.
Unlike magnetic-stripe cards, every time a secure chip card is used for payment, the card chip interacts with the reader and creates a unique transaction code that cannot be used again.
If a hacker stole the chip information from one specific point of sale, typical card duplication would never work because the stolen transaction number created in that instance cannot be used to complete other transactions.
When will I receive my Mastercard debit card with a chip?
We will begin reissuing chip cards January 1, 2016, with a complete reissuance by December 31, 2016.
When will I receive a new VISA credit card with a chip?
We will be reissuing all VISA credit cards January 2016.
Will chip cards prevent data breaches?
Chip card technology will not prevent data breaches from occurring, but it will make it much harder. Experts hope it will help significantly reduce fraud in the U.S., which has doubled in the past seven years as criminals have shied away from countries that already have transitioned to chip cards.
How do I use a chip card to make a purchase?
Just like magnetic-stripe cards, chip cards are processed for payment in two steps: card reading and transaction verification.
Instead of going to a register and swiping your card, you are going insert your card into a terminal slot, follow the prompts, and wait for it to process.
While the chip card is inserted and processing, data flows between the card chip and the card issuer to verify the card’s legitimacy and create the unique transaction data.
Will I still have to sign or enter a PIN for my card transaction?
You will still sign or enter a PIN for transactions. If you are using your card at an ATM, you will still enter your PIN as you do now. In some cases, such as a restaurant drive-thru, you may not have to sign or enter your PIN depending on merchant’s requirements.
If I want to use my chip-card at a retailer that doesn’t support chip card technology yet, will it work?
Yes. The first round of chip cards will be equipped with both chip and magnetic-stripe functions so your spending is not disrupted and merchants can adjust. If you find yourself at a point-of-sale terminal and are not sure whether to insert or swipe your card, have no fear. The terminal will walk you through the process.
Will I be able to use my chip card when I travel outside the country?
For the most part, yes. The U.S. is the last major market still using the magnetic-stripe only card system. Many European countries moved to chip card technology years ago to combat high fraud rates.
You will still need to contact the credit union before you travel in order to avoid interruptions in card availability during your trip.
Why is everyone switching to chip cards?
Issuers around the world are including chips in their cards and merchants are moving to chip card-compliant terminals to increase security and reduce fraud resulting from counterfeit cards.
What do I need to do when I get my new chip card?
• Activate your new card — Call the number on the sticker on the card.
• Set up your PIN — A new PIN will be mailed to you in a separate envelope. You can opt to choose your own PIN when you call to activate your card, or you can change it at ATM once you’ve activated it with the mailed PIN. Destroy your old card.
• Update automated billing — Your card number has changed. If you use it for any automatic or recurring transactions, you will need to provide your new card number.
How do I change my PIN?
If you call to activate your card, you can change your PIN at that time. Once your card is activated, you can also change your PIN at any ATM.
If I have more questions, what should I do?
Please feel free to contact the eBranch at 800.626.2870.