Wednesday23 October 2019   
 
Date 2016/02/22         Hour     News Group International 2

Rick Brown, owner of Cornerstone Business Solutions, told members at the Gun Barrel City Chamber the purpose of the chip credit cards.

Less fraud with chip credit cards

Rick Brown, owner of Cornerstone Business Solutions, told members at the Gun Barrel City Chamber the purpose of the chip credit cards.

Posted: Thursday, February 18, 2016 4:03 pm

If you are a credit card holder, you may already be aware of the chip credit cards.

As chip technology will soon become the security standard in the U.S., some merchants are beginning to accept chip cards.

According to Rick Brown, owner of Cornerstone Business Solutions, the consumer will  enjoy greater security when making purchases at a chip-enabled terminal, since the chip provides better protection against counterfeit fraud.

Chip technology is already used in over 130 countries around the world, including Canada, Mexico and the United Kingdom.

Brown was at the Gun Barrel City branch of the Cedar Creek Lake Area Chamber of Commerce on Thursday to explain the benefits and the downfalls of the chip credit cards.

The EMV — which stands for Europay, MasterCard Visa — cards are supposed to make transactions more secure. EMV cards are also known as chip cards, because they contain computer chips that are used to authenticate each transaction.

Brown said retailers who do not have the new terminals  compatible with the chips will be held liable if there is fraud at the register involving an EMV chipped card.

Instead of swiping a chip card, you insert it into a payment terminal. Identifying information is encrypted on an embedded microchip, which is more difficult to counterfeit than a magnetic stripe.

According to Brown, chip cards and terminals work together to protect in-store payments. A unique one-time code is generated behind-the-scenes that is needed for the transaction to be approved, a feature that is virtually impossible to replicate in a counterfeit card.