Over the last decade, credit cards and debit cards have gained popular ways of payment. In the previous article, we talked about a cashless society and how to use digital systems for the transaction process. In the UK, half of the people are interested in card payment, and In the UK nearly 80% are in daily activities. Due to advanced technology, Chip and PIN cards are one of the prompt transactions. It makes it easy to handle a large amount of money. In Modern times we have no idea of how to utilize them. In the meantime, lack of knowledge is vulnerable for young generations. It uses quiet chip and PIN cards for younger people. Older people used to pay with the cashing way.
In this article, we’ll cover the following topics:
- Chip and PIN Cards meaning
- How Chip and PIN cards work
- The role of Chip and PIN cards over Credit cards
- Usage considerations on Chip and PIN cards in different countries
- Advantages of Chip and PIN cards
- Limitations
What is a chip and pin card?
Chip and PIN cards mean using the cards by entering your personal information through PIN to make a purchase. It is a technical way to pay for business, shopping, selling, and online purchases.PIN means the number or digit. Chips mean the information about the cardholder’s full name, Account number, Expiratory date, and 3-4 digits of security code on the back of the card.
- Chip and PIN cards require a personal identification number for making a purchase. It is a point of using the Chip & PIN cards. Only the cardholders know the number of PINs.So it may seem secure for online payment.
- On the other hand, chip, and signature cards are an alternate type of cards where you need additional signatures without any input of PIN. It is less usable in the USA but yet used in Europe.
Usage of chip and PIN Cards in different countries
In the early 2000s, Chip and PIN Cards were widely used and standard for transactions online. The franchise has implemented the use of Chip and PIN cards besides requiring PIN verification. Germany uses the method for personal transactions.USA transitioning chip and signature ways but now more chip and PIN. Canada, Australia, and Brazil have a growing adoption of Chip and PIN cards. India and China have limited adoption through the transactions. This provides a snapshot of how chip and PIN technology is versatile across different countries. It may seem different due to infrastructure and banking practices. Now we discuss how to use Chip and PIN cards, and how it works elsewhere.
How chip and PIN cards Work
- Credit cards have a magnetic stripe that contains information about the cardholder and chip -PIN cards have an EMV chip with a unique code for each transaction.
- When you use a chip and PIN, insert your cards into the merchant’s POS terminals so that the microchip can read through the machine. Then the Point of sale terminal facilitates the complete transaction.
- consideration on magnetic stripes and microchips:
- Magnetic stripe is an older system for the cardholders who swiped their cards through POS and signed a receipt.
- Microchips can easily find the records of a criminal other sides magnetic stripe produces fake signatures while using someone’s credit cards.
Chip and PIN reader is a device of the mobile version for making payments. It is likely used for the time of payments we need. It makes transactions much easier than before. Sometimes we need to take products on roadsides or public markets. Here we need a chip and PIN reader for easy transactions!
Advantages of Chip and PIN cards
Enhanced security and PIN cards provide better security compared to magnetic stripe cards. It has a unique code of generation for each transaction.
- Provide security for countries people to pay money from different corners of the world.
- Personal identification may enhance the standards of security.
The unique code of the transaction can help to avoid stolen card information. It can be safe for transactions!
The digital system involves different security keys. Hacking is a popular term for online marketing and banking practices. It reduces the criminals by the personal code.
Acceptance-Chip and PIN cards have a high accepted rate for global considerations. It feels comfortable for travelers. Many countries use chips and PIN cards to comply with advanced technology, security purposes, and quality standards. ButĀ 80% of people in the UK like half of people used credit cards. The high value of the transaction can distract the information. So Chip and PIN cards are essential for the high degree of transactions in the UK.
Key considerations
In the UK, the risk of card cloning is a big issue in the handling of card payments. Cardholders PIN is a potential service for exposure of PIN. If the cards lose you, you cannot control the cards. It has limited control over function.
Finally, You need to maintain the following ways:
Cover your keypad when you enter your PIN. Regularly check your bank statements and transaction history and report if any mismanage happens on the bank or card issuer. So try to maintain the policy of security and safety standards for women and children.Chip and PIN cards are the growing adoption of different ages of people elsewhere.
