Do smart cards improve credit card security?
Remember the days when ordering online with a credit card was done with much trepidation? There was so much uncertainty surrounding security, and credit card fraud was at the forefront of our minds. While our concerns are more centered around delivery costs today, credit card fraud is still an increasing concern so it's reassuring that added security measures, like smart cards, are being employed to help keep our credit cards and money safe.
What is a smart card?
A smart card simply refers to the embedded microchip you see on most credit cards. When you are shopping in stores you are still given the option to swipe and sign but also to enter a pin against the information stored on your unique smart card microchip.
Similar to your sim card in your mobile phone, smart cards embedded in credit cards store electronic credentials and reduce the risk of the credentials being altered, copied, or hacked. It is designed to reduce the risk of credit card fraud and offers a secure identity verification that can only be verified by using a unique PIN.
Whether you choose to use a pin or sign for your credit card transactions is still entirely up to you but eventually traditional magnetic strips will be phased out.
While financial institutions employ the best security measures and use the latest technology to avoid credit card fraud you can also help by not giving your credit card to others and keeping your PIN to yourself.
All credit card institutions offer security measures and fraud detection systems to keep your credit cards safe. To compare credit cards use RateCity's credit card comparison tool.