EMV chip credit cards with metallic squares on the front provide significantly better fraud protection than traditional magnetic stripe cards by creating unique transaction codes that can’t be reused. If you’ve received replacement cards with these chips (EVM stands for Europay, Mastercard, and Visa), you’ve likely wondered what the technology does and whether it actually makes your financial transactions safer. Understanding EVM card security is increasingly important as financial institutions transition away from magnetic stripes and as you manage the credit accounts that impact your mortgage qualification and financial health.
Did you recently receive a new credit card with a metallic square on the front of it?
Other countries have used them for years, and with the Target, Home Depot and other companies’ secure data being hacked, VISA, MasterCard, American Express and Discover have required companies and banks to issue smart-chip cards. Retailers must also update their equipment to accept the EVM cards or they are liable for fraudulent transactions.
This went into effect on October 1, 2015 — however not everyone has complied!
Here are a few things you should know about EVM Cards.
What does EVM Mean? Europay, Visa, MasterCard – the global standard for credit cards equipped with chips.
Are they safer? Yes, they make credit cards harder to counterfeit, and instead of sending your credit card info to a merchant, they use a “unique code” that hackers can’t use because it won’t work.
When will my old credit cards be replaced? If you haven’t received one yet, call your bank or credit card company. They were supposed to replace all cards by the end of 2015.
Are all EVM cards the same? No.
Chip-and-signature cards require you to sign for a purchase
Chip-and-pin cards make you enter a code
For right now, credit cards will have magnetic stripes AND chips.
What’s the catch? If you swipe your card, the new technology will never kick in and your information will be sent to the merchant the old way — which is much less secure.