Chip technology has reduced the level of fraud in the card market by 82%

The Introduction of chips significantly contributed to the reduction of fraud with counterfeit credit cards, according to research by VISA. Since the introduction of the EMV (Europay + MasterCard + VISA) standard, chip-based fraud in counterfeit card-based payments has declined by 82 percent.

Today, issuers are sending new chip-enabled payment cards to magnetic stripe credit card holders, which are set to expire soon.

The same “chip” technology is used during contactless payments, which allows users to easily pay through the POS-terminal.

According to Visa, in three years the number of chipped credit cards in the United States alone increased from 159 million to 500 million To 98% of all payments in the United States were made according to EMV standards.

The technology was developed jointly by MasterCard, Europay and Visa to improve the security of financial transactions. Among the main requirements of EMV is the need to enter a pin code when making any payments.

The chip has a much higher level of protection than standard magnetic tape. Inside the credit card is stitched a secret key that can not be removed without damaging the microprocessor. In addition, the chip is much less affected by magnetic fields and is able to last long enough.

Magnetic cards gradually disappear as unnecessary, as microprocessors have proven to be the most effective way to protect the data of the cardholder.