Personal Products & Services > Card Services > CHIP Card Frequently Asked Questions
What is a chip card?
A chip card is a credit card or debit card containing an embedded computer chip right in the plastic. It is like having a personal computer right in your card that is capable of performing a variety of functions, including card authentication, Personal Identification Number (PIN) verification and information storage, all in a highly-secure environment.
Are all Canadian financial institutions moving to chip?
Yes, however the specific timetable for the introduction of chip debit cards will vary from one financial institution to another.
Why is the industry moving to chip cards?
The move to chip card technology is the latest innovation in the rapidly changing payments environment, and demonstrates the industry’s efforts to prevent fraud and further secure Canadian electronic payments. Chip technology is a new generation of payment card technology that will make it virtually impossible for fraudsters to duplicate. This technology has been used in Europe and other parts of the world for several years.
When will Canada be fully converted to chip cards?
The complete migration to chip technology will take several years, given the vast number of Automated Teller Machines (ATMs), retail terminals and debit cards across Canada that must be converted. The majority of Canadians will be able to fully benefit from this new technology by 2010. All ATMs and chip debit cards must be converted by December 31st, 2012 and retail terminals must be converted by December 31st, 2015.
As a Canadian, will I be able to use my chip card outside of the country?
Yes. Chip cards can be used anywhere in the world where credit cards and debit cards are accepted today. Chip technology has already been or is being implemented in Europe, Asia, Latin America, the Middle East and Africa, and Canadian chip cards will be fully compatible with their systems. In countries like the United States that have yet to switch to chip or do not plan to, you will still be able to use your card as a functional magnetic stripe will still be on your card.
Does the move to chip mean that the magnetic stripe is not secure?
No, the magnetic strip is secure. The migration to chip card technology represents an evolution of the electronic payments system designed to make an already safe payments system even more secure.
What makes chip technology more secure than magnetic stripe?
A chip is a mini computer, which will give the card the ability to store and process data securely. Unlike a magnetic stripe, this processing power makes it extremely difficult to copy and reproduce cards and card information. Secondly, this processing power is used, together with cryptography (a series of mathematical algorithms), to allow the card and terminal to communicate with one another and carry out security checks to ensure the card is valid. Chip technology is based on a global standard known as Europay-MasterCard®-Visa® (EMV), a proven technology currently in wide use around the world. The EMV standard enables interoperability worldwide and offers a platform for security and service innovation that financial institutions can leverage. Once financial institutions have invested into this dynamic framework, they can continue to layer on security features in the future.
What is EMV?
EMV is the standard for interoperation used for authenticating credit card and debit card payments at chip-enabled terminals. The EMV specifications were collectively developed by Europay, MasterCard® and Visa® for payment systems, in order to ensure that chip cards function with chip terminals.
Will I still have a magnetic stripe on my chip Member Card®?
Yes, your chip Member 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.
What are the benefits to consumers?
The primary benefit is added security. Chip cards provide additional protection to avoid disclosure of personal information and they are very difficult to copy. The benefits of chip card technology include extra security and protection from counterfeit, identity theft and fraudulent activity.
- 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.
What type of information will the chip contain?
- Interac® Association requires financial institutions to store the same type of information on the chip that is currently stored on the magnetic stripe today — which is payment related information that will allow the debit transaction to be authorized and processed (e.g., the debit card number or the financial institution code).
- While the information is the same, it will now be stored within the chip, which is virtually impossible to duplicate because each chip is personalized with data unique to the financial institution.
- The financial institution that issues the card owns the chip containing the data, so you should contact your financial institution directly for more information about your chip card.
When will Member Card chip cards be implemented at SASCU?
Chip implementation for Member Card debit cards will commence in the Fall of 2010. Every financial institution has their own timetable to provide new cards to their customers. Chip terminals will recognize both chip and magnetic stripe cards throughout the transition period, so you will be able to continue to use your magnetic stripe card where chip terminals are not yet available.
Will I still require a PIN?
Yes. Chip-enabled Automated Teller Machines and retail terminals will still require that you enter your PIN just as you do today. The PIN remains a key security element of the transaction.
How do I get my PIN? How do I change my PIN?
Prior to receiving the new chip Member Card, members will receive a PIN in the mail. If you want to change your PIN once you receive your card, you can visit any one of our SASCU ATMs or ask for the assistance of a Member Service Representative in-branch.
What do I do with my current card?
When you receive your new chip Member Card, destroy your old magnetic stripe Member Card by cutting it in half.
Do I need to sign the back of my chip card?
Yes, you will need to sign the back of your new chip Member Card.
Will chip debit card transactions be conducted differently than magnetic stripe transactions at retail merchants?
When conducting a chip debit transaction at a chip-enabled retail terminal, you will no longer swipe your card through the machine. Instead, you will insert your chip debit card into the terminal and leave it there for the duration of the transaction. You will then have to follow the prompts just as you do today. If the merchant has a chip-enabled retail terminal, the machine will always process the transaction as a chip card transaction and never as a magnetic stripe transaction.
What information would a merchant obtain from a chip card versus a magnetic stripe card?
With chip cards, merchants do not have access to any other data than what they had with a magnetic stripe card. The only information that merchants are allowed to store is the basic transaction data, such as the time, date, purchase amount and debit card number. This basic information is necessary in the event that a cardholder requests a trace. The only information stored from the debit card itself is the debit card number, which alone is not sufficient enough to create a counterfeit card.
Can chip cards still be skimmed as long as they carry the magnetic stripe?
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 retail terminal swipe devices and card skimming tools. For more information about how to protect your PIN and yourself from fraud, visit our Resource Centre on sascu.com.
The good news is that chip technology will be much more secure and criminal-proof than magnetic stripe technology.
How can I protect my PIN?
- Memorize your PIN and do not carry it with you
- Do not disclose your PIN or lend your card to anyone
- Never keep your PIN and card in the same location
- If you become aware that your PIN has been compromised or is known to others, call a Member Service Representative during branch hours to cancel your card immediately. After hours call 1-800-567-8111 or 1-800-LOST-111 to requst that your card be cancelled. Your PIN is unique to you and it must be kept confidential.
Remember, never disclose your PIN to anyone and never carry it with you. You will never be asked for your PIN when making a mail order or online transaction. Never disclose your PIN over the phone, Internet or when making a mail order transaction.
Will chip cards be accepted by stand-alone terminals, such as pay-at-the-pump gas stations, toll booths or parking lots?
Chip Member Cards will work wherever magnetic stripe Member Cards are accepted today.
I've seen ads for wallets that block the chip signal so people can't steal my money. Should I get one?
No. The chip used in debit cards and credit cards does not emit a signal. The only way to get information from the chip card is by inserting it into a chip-enabled retail terminal or ATM.
With the chip card will I need to do anything to protect myself?
Yes. Protect your PIN. As with the magnetic stripe card, if someone obtains or steals your chip card and has your PIN – or if you lose your wallet or purse and your PIN is written down in it somewhere – they will be able to make purchases and withdraw funds from your account.
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