Why Are Credit Card Chips Safer Than Swiping?
Ever wondered why you are swiping your credit card less often? Keeping reading to learn more about this new security feature on credit cards.
Swiping your credit card is an extremely reinforcing feeling. There’s something addictive about splurging and siphoning your bank account. Unfortunately, most credit card companies have parted ways with the swiping method. While a lot of places still accept swipes, the primary payment method has been switched to the computer chip emblazoned on the front of your card.
The transition process has been all but smooth. Anyone who has ever shopped with a credit card in the past year knows the struggle of juggling between swiping your card and inserting your chip. Considering how long it takes for the chip reader to recognize your card, many people are frustrated with this new technology.
However, this metallic chip was added as a safety precaution. It adds a new security measure that scrambles the transaction information. To elaborate, when you swipe your credit card the standard way, it records information that is unchanged. If this information were to be obtained by a hacker, they would have access to your sensitive information and could steal some of your funds.
With the new chip technology, this information gets scrambled, and each transaction code is unique. If a hacker were to achieve this information, it would be of no value due to the altering of the transaction log.
MasterCard and Visa have reported that fraud rates have decreased since these chips were released. In May 2016, Visa reported that merchants equipped with the chip reading technology reported an overall 47% drop in fraud throughout the past year. Mastercard reported an astonishing 54% decrease in fraudulent activity from April 2015 to April 2016. Mastercard also stated that merchants who aren’t equipped with chip readers have had a 77% increase in fraud.
While this new security feature isn’t the silver bullet to end fraud, it is certainly a bonus that will make a hacker’s job much more difficult.
While the chip readers will give hackers a harder job, PSafe Total will ruin their day. PSafe Total is an app that helps provide maximum security and optimal performance to your device. The Anti-Theft feature, for instance, can track, block, locate and even erase all of your data remotely in the case of loss or theft.