The Switch To Smart Cards Is Coming Soon

The official switch-over to the EMV smart chip card is coming. With an October 1, 2015 deadline looming for retailers, credit unions and banks, now is the time to inform cardholders and future cardholders about the benefits of these smart chip cards.

The Lowdown On Smart Cards

Credit union members around the country will soon be able to use their credit and debit cards in stores with a new layer of protection against fraud in the form of a small microchip embedded in the card. The chip is designed to communicate with specially outfitted card reader terminals used at the point of sale that will authorize each sale based on various PIN and data verification processes. This effort to improve payment technology has been years in the making and has been shown to deter most forms of theft and fraud. It has been used in Europe for years – EMV stands for Europay, MasterCard and Visa – and it has been successful in the countries where it has been implemented.

How It Works

The card – which looks similar to your old credit card but with a distinctive metallic square embedded in its face – is equipped with a small micro processing chip that stores individual data and more, including the card number. Unlike the old magnetic card strips, the information contained within the chip, accessed only by the special processing terminal, uses dynamic data authentication, encryption, and often PIN verification to protect against counterfeit, lost or stolen cards. It is nearly impossible to duplicate, and it protects against “skimming” machines, which fraudsters use to scan information from magnetic strips. This advanced Cardholder verification helps ensure that the person attempting to make the transaction is the person to whom the card belongs.

Are You Ready For The Switch?

By October 1, 2015, most major retailers and financial institutions should have switched to these new smart cards, issuing new VISA^® and MasterCard^® credit cards to all current cardholders and those signing up for new cards. While some smaller retailers are not ready for the change, most will have changed over, so updating systems and educating cardholders is key to a smooth transition.

Make Your Transition To Chip Cards A Smooth One

Now, during the slower months of summer, is a great time for credit unions to put together a targeted campaign to educate members about the importance of having a card that protects them more at the point of purchase and be ready for a fall roll-out. MPI has the tools credit unions need – print, eMarketing, multi-channel distribution – to help you reach as many people as possible with your chip card transition. Maximize your opportunities with creative content and deliverables. Call us at 888-641-1215 or email us now.

Learn more about the advantages of EMV cards here.