Lubbock National Bank now offers EMV credit and debit cards with an embedded chip that help fight fraud.
Kyle McNeese, senior vice president – chief information officer, explains why we’ve made this change, followed by a helpful FAQ to give you what you need to know about this important upgrade to making your financial transactions more secure.
Remember when Target and Home Depot got hacked?
“Criminals hacked their servers, got information and used that online to make purchases,” said McNeese. “It was a big deal and these cards will help stem that type of criminal activity. The chip checks - in each transaction - to make sure this card is the same card it saw last time – the key is to reduce ability to make counterfeit cards,” he said.
McNeese said by 2024 most cards with the dark mag stripe on the back will go away, which gives merchants plenty of time to adopt the new processors or chip-enabled terminals. He also said most fuel pumps should be converted by 2019.
McNeese said he’s heard some concerns the chip card takes longer to process, but it depends on the merchant’s system and traffic.
It stands for Euro, Mastercard & Visa or they’re also called chip cards.
Chip cards are like the card you have today but include an embedded microchip. The chip contains information that is encrypted, making it extremely difficult for the card to be copied or counterfeited. Your chip card will also have the usual magnetic stripe on the back so you can continue using your card while merchants are transitioning to new terminals.
The embedded microchip provides strong transaction security features, and other application capabilities, not possible with traditional magnetic stripe cards. A chip card is extremely difficult to counterfeit.
Your chip card provides an extra level of security and is easier to use at international locations. If you want one of the new cards, come in and ask for it – or else it will be reissued once your current card expires.
A chip card looks just like a traditional card with an embedded chip in addition to the standard magnetic stripe on the back of the card. Rather than swiping your card when making a purchase, you will insert your card into a terminal to complete the transaction. One big difference is you leave your card in for the entire transaction. Once your transaction has been completed, you will be prompted to remove your card from the terminal.
The chip in the card communicates with the terminal to determine whether or not your card is authentic. Depending on the security preferences associated with your chip card as well as the terminal, you will be prompted to provide your signature or Personal Identification Number (PIN) to complete your transaction.
Although chip cards are relatively new in the U.S., they have been used in other countries for many years. In some foreign countries, particularly in Europe, chip cards continue to be widely used and have been successful in reducing fraud.
You can use your chip card everywhere you shop today. Insert your card into a chip-enabled terminal or swipe your card at merchant locations that have not yet switched to chip-enabled terminals. You can also continue to use your card as you did before – for online transactions, mail order/telephone order transactions, pay-at-the-pump fuel purchases, and at ATM machines.