Credit cards have revolutionized how we carry cash around. In recent years, the number of people who actually keep paper money in their wallets has drastically decreased and it has a lot to do with how secure credit card transactions are. But does that make you wonder how this plastic even works? Let us show you what are the different types of technology that are used in credit cards.
All-Time-Favorite EMV Technology
EMV technology is the most widely used standard behind credit card payments. Almost all the cards that are issued in the US are equipped with EMV or better known as Chip and Pin technology. Many Credit Cards Like doubleyourline used for credit increase use this famous technology. In addition, EMV technology promotes security for credit card reader systems.
Fun Fact! EMV stands for Europay, Mastercard, and Visa. These were the first three companies that initiated credit cards hosting this chip technology.
Previously EMV chips and signatures used to be more common. As the name suggests, these credit cards needed a cardholder’s signature to complete the transaction. Now chip and pin credit cards have flooded the market. Typically, when you are making a transaction, a 4 digit code is required in order to pay via card.
You can choose the PIN or one would be assigned to you automatically when the credit card application is approved. This depends on the issuer that is providing you with the card.
PIN verification has proven to be more secure since signatures can be forged but duplicating a PIN is not an easy task. In fact, EMV cards are safer in general as compared to traditional cards and they have helped cut down credit card frauds considerably.
Technology That Allow For Contactless Payments
Contactless payments make all the more sense amidst a global pandemic when all of us are trying to minimize physical contact to curb the spread of disease. In this regard, NFC or Near Field Communication has proved to be of much interest.
NFC technology combines your credit card account and smartphone. An NFC chip is installed into your phone and when this chip interacts with another one present at the contactless payment terminal, data would be transferred easily while you can stand away. In my opinion you should check getmyoffer capital one offers good credit cards, cause they are created with this technology and known for most reliable cards in the market.
The chips do not need to come in direct contact. They can be centimeters away and the transaction would still be successful.
NFC technology has been installed in almost all new credit cards available now. They allow for data transfer at a distance of almost 4 cm. However, most of these credit cards cater to contactless payments of $100 or less.
If you are wondering whether NFC payments are safe or not then the answer is yes, these are completely secure! When using NFC chips, your device will generate a unique code that can only be employed by you. This not only ensures that you are correctly billed but also saves the user from any fraudulent activity.
Did You Know? It is also possible to withdraw funds from a credit card or debit card even if you do not have the card in hand. You will need the mobile app relevant bank where you can provide credentials for the account to access it. Then simply enter how much you need to withdraw and provide the cash code to the ATM machine. Done!
So this is how the harmless piece of plastic in your hands can do wonders. If you’re an entrepreneur planning to open a business, hire card processing consultants to guide you on card transactions. Hopefully, now you will have a better understanding of what goes on behind the curtains as you swipe your card and leave the counter.