Chip Technology
Chip Card FAQs
- What is a chip card?
- When will I receive my chip-embedded MasterCard credit card, Member Card debit card and Global Payment /Chequewise card?
- Will I still have a magnetic stripe on my card?
- What are the benefits of the new chip card?
- Where can I use my chip card?
- How do I use my chip card to pay for a purchase?
- Do I enter my PIN when using my credit card for internet purchases?
- Do I use the same PIN for ATM cash withdrawls and when making purchases at chip-reading terminals?
- Will I be able to use my chip card outside of the country?
- Does the move to chip mean that the magnetic stripe is not secure?
- Are chip cards 100% immune to fraud?
- Can chip cards still be skimmed as long as they carry the magnetic stripe?
- Exactly what information is stored on the chip?
A chip card, or “smart card”, is a card product containing a microchip embedded right into the plastic. It’s like having a personal computer right on your card that is capable of performing a variety of functions, including card authentication, PIN verification, and information storage, all in a highly secure environment.
For you, having a chip card means that you will have to enter a four-digit Personal Identification Number (PIN) at chip-reading terminals for every transaction, regardless of whether you are paying with a debit or credit card.
Currently, chip is only being introduced on CUETS MasterCard credit cards. Prior to receiving your chip credit card, you will receive a PIN in the mail. If you would like to change your PIN once you receive your card, or would like to find out more about chip cards and PINs, visit www.choicerewards.ca/chip or call 1-800-561-7849.
Chip implementation for Member Card debit cards and Global Payment/ChequeWise cards will occur in the near future.
Yes. Your chip card will continue to have the magnetic stripe on the back. This will ensure that you can use your card at retail locations that don’t have a chip-reading terminal, as well as in other countries where chip cards and chip-reading terminals are not yet available. If you use your credit card at a retailer that does not have a chip-reading terminal, the magnetic stripe on your card will be swiped and you will be asked to sign a receipt as you have in the past.
There are many benefits to chip technology including:
- Chip cards are virtually impossible to copy.
- They offer enhanced privacy and additional protection to avoid disclosure of personal information.
- Chip cards and chip terminals work together to ensure a highly secure transaction by validating the card and the cardholder.
The decision to make the shift in Canada has been predominantly led by substantial increases in counterfeit and fraud activity. Chip cards provide extra security and protection from identity theft, counterfeit and fraudulent activity.
You can use your chip card at any retail location or Automated Teller Machine (ATM). If the card reading terminal is chip-enabled you will be prompted to enter your four-digit PIN. If you use your credit card at a retailer that does not have a chip-reading terminal, the magnetic stripe on your card will be swiped and you will be asked to sign a receipt as you have in the past.
Chip technology is also being implemented in other areas throughout the world including Europe, Asia, Latin America, the Middle East and Africa.
Making a purchase using a chip credit or debit card is easy and secure. All you have to do is follow these simple steps:
Step 1: Insert your chip card “chip first” into the chip-reader on the terminal.
Note: Your chip card remains in the terminal during the entire transaction.
Step 2: Click OK on the purchase amount. Enter your four-digit Personal Identification Number (PIN) and wait for the transaction to be processed.
Step 3: Remove your chip card after your transaction is Approved. With chip technology you don’t have to sign a receipt when you make a purchase, instead you only enter your four-digit PIN.
You can watch a video on how to use a chip card.
If you use your credit card at a retailer that does not have a chip-reading terminal, the magnetic stripe on your card will be swiped and you will be asked to sign the receipt as you have in the past.
Using your chip credit or debit card at an ATM will remain the same; you will still need to enter your PIN to complete the transaction. The PIN that you use is the same for both chip-enabled terminals and ATMs.
No. You only enter a PIN while making face-to-face purchases with your credit card. Internet, mail order and telephone order purchases will continue as they currently do.
Yes, you will use the same PIN.
Yes. Many countries have already adopted chip technology and Canadian chip cards will be fully compatible with these systems.
In countries that have not yet switched to chip technology, you will still be able to use your card as it will also have a magnetic stripe.
You should have full confidence in the security of magnetic stripe cards. The migration to chip technology represents a forward-looking evolution of electronic payments systems designed to make an already safe payments system even more secure.
During the transition period to chip, magnetic stripe cards will continue to provide you with a safe, reliable and convenient method of payment.
Remember to always Protect Your PIN whether you are using a chip card or a card with a magnetic stripe.
Chip represents the highest level of security available to protect payment information and prevent fraud. While no technology is 100% invulnerable, chip cards employ a range of security features and measures that work in concert with each other to create a multi-layered defense against fraud. We are regularly testing our systems and the technology to assure the highest level of security.
Yes, the information can be skimmed from the magnetic stripe.
You should continue to protect your card and PIN and be aware of what cashiers and others are doing while handling your card.
You should also remain on the lookout for cameras and fake swipe devices and card skimming tools. Learn how to protect yourself from debit card skimming. The good news is that chip technology will be much more secure and criminal-proof than magnetic stripe technology.
Interac Association requires financial institutions to store the same type of information on the chip that is currently stored on the magnetic stripe. This includes payment related information that allows the transaction to be authorized and processed (i.e. the debit card number and financial institution code).
Chip Technology
How to Use a Chip Card
Chip MasterCard Credit Cards
Chip Debit Cards
