Chip Technology

	What are smart cards? Smart cards are payment cards carrying an embedded microchip. Compared to existing magnetic stripe cards, the computing power of the chip means that smart cards can offer new payment options and services, greater security, and more convenience and choice.

How do they make payments more secure?

Smart cards can protect against ‘skimming’ or copying the contents of the magnetic stripe.  If they are used in conjunction with a personal identification number (PIN), they can also reduce lost and stolen fraud.  When you use your card at the point of sale, the chip card sends a secret message to authenticate every transaction.  This secret message changes for every transaction, making it harder for a fraudster to steal the information.

What other benefits do smart cards offer?

In addition to protecting against fraud, smart cards help to consolidate your wallet through the ability to combine multiple functions on one card, such as reward programs, discounts, special offers etc.  With smart cards, you enjoy the added convenience of carrying less cash.