Learn about the new EMV chips
The deadline for credit card companies to switch over to the EMV chips was Oct. 1. The chip has stronger protection because “Unlike magnetic-stripe cards, every time an EMV card is used for payment, the card chip creates a unique transaction code that cannot be used again,” according to creditcard.com.
The deadline simply changes the responsibility of the card distributors. If distributors have the EMV chips and retailers do not have the machines to read them, retailers will be held responsible for any fraud. If not, then the credit card companies are held responsible.
This has produced some changes for consumers and also increased potential for scams.
Therefore, We The Threefold believe that students need to be aware of EMV chip controversies and potential scams.
USA Today has researched one potential scam in which the scammer poses as the credit card company via email and asks the victim for updated information on their credit card to receive an EMV card. The article advises consumers to recognize these emails as scams, denying that the company would ask you over email for sensitive information to receive the new card.
Furthermore, this does not affect consumer responsibility. Each person is liable for $50 of fraud that is used on their card.
There is one significant difference between the EMV chip and the magnetic strip. According to USA Today, in all EMV cases, one must use the card after the complete total has been rung up. This is because it is important to the coding of the information.
The Threefold urges students to stay informed with regards to recent changes to their credit cards.
It is possible for more changes to occur as this new technology is being introduced in the U.S. This is an important issue for students who regularly use debit or credit cards. Therefore students need to be aware of what is going on in the finance world.