Chip n Pin Debit Cards
Wednesday, 05 January 2011 10:08
A chip and pin debit card is a type of smart card that has been implemented in the United Kingdom. Before chip and pin, a magnetic stripe was used, or the number was entered into a system manually. This is the familiar "swipe" of a debit or credit card. The magnetic strip technology is becoming less secure as several technologies have emerged on the black market that can be used both to read and write magnetic strips. This makes it possible for a card to be cloned and then used without permission of the owner.
The chip and pin technology, also known as chip n pin, instead uses an embedded microchip. Under these circumstances, the card is placed into a pin pad, which is a different type of card swipe reader. The device reads and authenticates the the card. The user then enters a four digit pin into the machine. This pin is then submitted to the chip on the card. If the chip authenticates the pin, the transaction is then authenticated.
Using this type of system, France has been able to cut down its card fraud by 80 percent. In the UK, the system is referred to as chip and pin, but it may have other names in different countries. The primary advantage of the technology is the fact that the card can not be copied. This is in contrast to a magnetic strip, where an employee could copy down the information swiped from a card and use it for their own purposes. Pin pads take advantage of wireless technology, allowing them to be easily relocated from one place to another. In this way, the card does not have to be run out of site of the user. By bringing together the wireless technology and the chip and pin technology, the risks of fraud are drastically reduced.
Using this type of system, France has been able to cut down its card fraud by 80 percent. In the UK, the system is referred to as chip and pin, but it may have other names in different countries. The primary advantage of the technology is the fact that the card can not be copied. This is in contrast to a magnetic strip, where an employee could copy down the information swiped from a card and use it for their own purposes. Pin pads take advantage of wireless technology, allowing them to be easily relocated from one place to another. In this way, the card does not have to be run out of site of the user. By bringing together the wireless technology and the chip and pin technology, the risks of fraud are drastically reduced.
