• The reserve bank of India has asked all banks to issue chip- and – PIN cards by june .• Chips cards are different from the magnetic – stripe which are recently used .• Chips card is expensive than a magnetic striped card.• It costs between 200 to 300 rs while a magnetic stripe cards costs 100 to 150 rs .
What are chip –enabled cards ?• A chip cards resembles a standard credit/debit card but doesn’t have a magnetic stripe at the back. The chip is not visible as it is embedded in the card .However ;some banks are issuing chip cards with magnetic stripe as well because all merchant outlets are not equipped to handle a chip cards at present
Benefits of chip cards• This cards stores a personal identification number or pin. Instead of swipping and signing for a purchase the card holder punches in the pin . The chip is encrypted and provides enhanced security and protection against fraudulent transcations when you use your chip cards at stores or restaurants that have chip enabled terminals and at ATM’s the system validates the chip ensuring security of your transaction
Can chip cards be used anywhere?• They can be used anywhere in the world whenever Visa/Master card are accepted .If you are using your chip card at the location that does not have a chip – enabled terminal, your card will be swiped and the transaction will be completed with your signature as in the case of the regular card transaction it can be used for online transactions as well with the use of PIN
How secure is it compared with magnetic- stripe card• Chip and PIN cards are designed to prevent credit card frauds . Magnetic stripe cards ,however can be cloned by skimmers. This has become a big problem for banks ,law enforcement agencies, financial regulators and customer across the world .cloning cards with chips is impossible as you cannot forge the PIN.