Why Credit Cards w/ Chips?

[herbu]

A couple weeks ago, our bank replaced our old credit cards w/ new ones that have the embedded chip. The first time I used it, I was surprised. It takes 20x as long for the terminal to read it. In addition, we read that somebody with the right equipment could read the card in your wallet or purse, just by standing next to you. So we bought protective sleeves for the cards.

Now when I use the card, I have to remove it from the sleeve, wait 10 seconds while the terminal reads it, then put it back in the sleeve.

HOW is that better than the old cards w/ the magnetic strip? It certainly isn't better for me. It takes longer and is less secure in my pocket. Is it cheaper for the banks? Why is everybody going to this new type card?

 

[Irvrobinson]

To fight counterfeiting of cards. Mag strips are easy to fake.

 

[BoredSysAdmin]

Hey Herbu, I think you got things a bit confused - here are the details about cards with chip:
https://en.wikipedia.org/wiki/EMV

Don't confuse RFID cards with EMV - Prior could be read straight from your wallet, later is contact only.
As for delay - a) I think I would suffer 10 extra seconds, knowing that my credit card info is much more secure.
Now no system is perfect, EMV has been already messed with and it's certainly not 100% , but it's vast improvement over old skool wipe and sign

 

[Hobbit]

https://en.wikipedia.org/wiki/EMV

As for delay - a) I think I would suffer 10 extra seconds, knowing that my credit card info is much more secure.

Actually, I've noticed the delay has significantly gone down. Last night at the grocery store the transaction was as fast as a swipe.

 

[herbu]

Don't confuse RFID cards with EMV - Prior could be read straight from your wallet, later is contact only.

Ah! Thanks!
My card has a chip... also a little icon w/ 4 ")" shapes each a little bigger than the last... kinda like an icon of sound waves coming out of a speaker. Does that mean it has RFID?

 

[BoredSysAdmin]

Ah! Thanks!
My card has a chip... also a little icon w/ 4 ")" shapes each a little bigger than the last... kinda like an icon of sound waves coming out of a speaker. Does that mean it has RFID?

Not sure, can you post photo? (edit out private info of course)
Also did the bank advertize you could pay with it just with tapping the terminal?

 

[slipperybidness]

To fight counterfeiting of cards. Mag strips are easy to fake.

True, but it only helps to protect the physical card, not the info.

It won't be too long before the chips are being copied by evil doers too. It's a security arms race and the bad guys always catch up.

 

[BoredSysAdmin]

True, but it only helps to protect the physical card, not the info.

It won't be too long before the chips are being copied by evil doers too. It's a security arms race and the bad guys always catch up.

Agreed Like I said above - http://info.rippleshot.com/blog/chip-pin-emv-wont-stop-fraud-heres

 

[Irvrobinson]

True, but it only helps to protect the physical card, not the info.

It won't be too long before the chips are being copied by evil doers too. It's a security arms race and the bad guys always catch up.

Actually, it protects both, because the data is encrypted. Burning encrypted data into a ROM is a lot more difficult to achieve, so these cards raise the bar a lot.

The bigger problem as I see it is that the information printed on the card is still insecure for online transactions. The existing virtual card number technology is a PITA; what we need is better VCN technology.

 

[slipperybidness]

The bigger problem as I see it is that the information printed on the card is still insecure for online transactions. The existing virtual card number technology is a PITA; what we need is better VCN technology.

Yup, this is what I was getting at.

Yeah, the chips are much more difficult to copy for now. Give it 5 years for the technology to get cheaper and easier to come by for cloning chips, then we are right back in the same boat.

 

[herbu]

Not sure, can you post photo? (edit out private info of course)
Also did the bank advertize you could pay with it just with tapping the terminal?

This is the symbol...

Not sure how it was advertised to us. My wife handles all that, and she's the one that decided we needed protective sleeves. I'll ask her.

 

[Irvrobinson]

Yeah, the chips are much more difficult to copy for now. Give it 5 years for the technology to get cheaper and easier to come by for cloning chips, then we are right back in the same boat.

Cost isn't a factor. The barrier to fraud is that you need to reverse-engineer an encrypted memory map that you don't know the structure of. The only way to pull it off is to have that insider information. I don't know enough about the EMV specs to know how improbable that is, or if they built-in counter-measures that can side-step leaks.

 

[BoredSysAdmin]

This is the symbol...
View attachment 16840
Not sure how it was advertised to us. My wife handles all that, and she's the one that decided we needed protective sleeves. I'll ask her.

It looks like your card does have RFID - Probably good idea to keep in rfid protective sleeve...

 

[Rickster71]

Sorry if this was already mentioned...

It's my understanding every time an EMV card is used for payment, the card chip creates a unique transaction code that cannot be used again.

We still aren't libel for stolen numbers or cards, regardless of what type of card you use.

Over the years our cards have been hacked, or otherwise compromised about six times in the last fifteen years. The card company has notified us every time and they immediately overnight new cards.

 

[Rickster71]

Some more info - 8 FAQs about EMV credit cards
http://www.creditcards.com/credit-card-news/emv-faq-chip-cards-answers-1264.php

 

[GO-NAD!]

Why is everybody going to this new type card?

So that the USA will be in alignment with the rest of the planet.

Next, it will be the Metric System.

 

[BoredSysAdmin]

 

[slipperybidness]

So that the USA will be in alignment with the rest of the planet.

Next, it will be the Metric System.

What an awesome day that would be!

 

[herbu]

Some more info - 8 FAQs about EMV credit cards
http://www.creditcards.com/credit-card-news/emv-faq-chip-cards-answers-1264.php

Thanks, Rick. Very helpful.
There were a couple humorous comments...
"you no longer have to master a quick, fluid card swipe". Thank goodness!! I can't tell you how hard I've worked to master that elusive skill. I will admit that others, usually women, do have a tough time mastering the motion. Perhaps some exercise w/ a repetitive up/down motion would help.

"It will take a tiny bit longer for that transmission of data to happen".
Perhaps on a logarithmic scale. I can swipe my card in less than a second. The new one takes at least 10 seconds. Was this article written by somebody who used to work in politics?

 

[lsiberian]

FWIW many vendors already were using encrypted terminals. The major change on this one is Credit Card companies are making vendors that don't use chip terminals liable for any fraud. Your information is still on the card strip, but vendors using it don't get the banks fraud protections.