Are you interested about why all of your credit cards have recently been replaced with new ones containing the so-called EMV chip? The reason is that it’s been mandated by the payment card industry security standards cancel. PCI sets the rules at the parties involved in credit card transactions are required to follow. EMV chips have been used for years in Europe and they are more secure than traditional cards. Unlike traditional cards that can be stolen in counterfeited, EMV chips contain encrypted data about the consumer that is much harder to reproduce.
One other major new rule is that starting October 1, merges into except card containing EMV chip must produce those cards on new chip terminals. Merchants that failed to update their terminals will be liable for the fraudulent transaction, not the bank that issued the card. Despite years of advance notice, the card processing industry has been slow to drive the migration to the new standard. Even at this late date, most merchants are probably unaware of the new requirement.