What is a Chip Card?
Chip cards store encrypted and confidential information, and therefore offer greater security than magnetic stripe cards. The chip technology is more effective in preventing your cards from being copied to produce counterfeit cards.
Both chip cards and magnetic stripe cards are welcome by merchants around the world.
The processing of a chip card is very similar to that of a magnetic stripe card. Merchants that are capable of handling chip cards will insert the card into the terminal instead of swiping the card. The cashier will keep the card in the terminal until a sales slip is printed out (A typical chip card transaction). Merchants that are yet to be upgraded will continue to swipe the card through the terminal.
The way you use the chip card at ATMs and other self-service terminals will remain the same.
A typical chip card transaction
Cardholder identity verification
The migration of existing credit cards from magnetic stripe to chip will follow the existing expiration date shown on the card. All new and replacement cards will be issued on chip.