Chip Technology

Chip-based payment platforms

Moneris has set the stage for chip-based payment platforms as an integrated and convenient experience for consumers and merchants. We are among the first acquirers in Canada to be certified by Interac Association, Mastercard and VISA, to deliver chip technology to Canadians.

Chip-enabled credit and debit cards are being issued across Canada and will see a gradual increase in distribution over the next three years. VISA and MasterCard have committed to a mass distribution of chip cards in the market by 2010. Interac has also established migration mandates with Automated Banking Machine (ABM) and point-of-sale (POS) conversion starting in 2010.

A chip card (also referred to as a “smart card”), is a credit or debit card that contains an embedded computer chip. A chip card is the next generation of credit and debit cards. Just like your current debit card, chip cards will require the cardholder to enter a Personal Identification Number (PIN).

FAQ

What is a Chip Card?

A chip card (also referred to as a “smart card”), is a credit or debit card that contains an embedded computer chip. A chip card is the next generation of credit and debit cards. Just like your current debit card, chip cards will require the cardholder to enter a Personal Identification Number (PIN).

What is EMV?

The established international standard for chip cards and terminals was developed by Europay, MasterCard and Visa (EMV) to ensure worldwide interoperability. EMV defines how debit and credit payment applications work. In February 2009, American Express (Amex) became the fourth owner/member of EMVCo.

What information is stored on a chip card and how secure is this information?

The information stored on a chip is the same payment related information that is currently stored on the magnetic stripe. This information is protected by multiple layers of security and will allow a transaction to be authorized and processed. No personal information is stored on the chip.

What are the benefits of the chip card to consumers?

Chip cards and chip terminals work together to ensure a highly secure transaction by validating the card and the cardholder via a PIN. The computer chip makes cards more difficult to copy, reducing counterfeit fraud. Chip credit and debit cards make a secure payment system even more secure.

Why is the industry moving to chip?

The move to chip technology is the latest innovation in the rapidly changing payments environment. The move demonstrates the industry’s efforts to prevent counterfeit and lost and stolen fraud and to further secure Canadian electronic payments.

What does this mean for me as a merchant?

At a chip-enabled terminal or ABM, the chip card is inserted and left there for the duration of the transaction. The cardholder simply follows the prompts to complete the transaction. Credit cardholders will need to enter a PIN, just as they do now for debit cards. A PIN is a more secure form of cardholder identification and will replace the cardholder’s signature.

What about cards with a magnetic stripe?

Chip terminals will recognize both chip and magnetic stripe cards. In non-chip enabled terminals, cards will be swiped and a signature will continue to be required for credit card transactions and a Pin for debit transactions. Magnetic stripe will co-exist with chip card technology to allow consumers to user their cards at non-chip enabled terminals.

Related Links

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