Everyone, Here's Why You Need To Shift To EMV Credit And Debit Cards ASAP!
We've all seen it in the headlines before: a person reports unauthorized credit card charges amounting to hundreds of thousands of pesos, while others complain of credit card-related identity theft or have their ATM accounts mysteriously maxed out.
We wonder how we can safeguard our own finances and use our credit, debit, and ATM cards safely and protect ourselves against fraud and theft. Luckily, the Bangko Sentral ng Pilipinas (BSP) has already taken measures to shield Filipinos against these risks, all of which you can do right now.
It's simple: all you need to do is to go to your bank, and request your cards to be replaced by EMV chip cards.
EMV is short for Europay, MasterCard, and Visa, and is the new global standard for credit and debit card payments. It essentially replaces the magnetic strip found in credit and debit cards with a microprocessor chip that adds layers of security to your financial accounts and transactions.
While magnetic strip cards were once perfectly safe to use, technology has allowed just about anyone with an inexpensive skimming device to steal card details. The device works by capturing and storing all the details stored in the card's magnetic strip, allowing fraudsters to use your account information to make online transactions, or worse, create counterfeit credit cards using your personal information.
Fortunately, EMV chip cards make it virtually impossible for this to occur — or at least extremely difficult — by incorporating these security features:
- Card authentication (the card is authenticated during a transaction to weed out counterfeit cards)
- Cardholder verification (unauthorized parties are prevented from accessing your personal data or changing account details)
- Transaction authorization (transactions are verified online under defined rules set by your bank)
- Dynamic authentication (the EMV chip generates a one-time use code for every transaction that cannot be lifted or copied)
While many financial institutions have said that both digital and physical transactions might take a little more time with EMV chip cards, it's a small price to pay if what you get in return is decreased risk of fraud and theft.
Last year, BSP urged all banks operating in the Philippines to replace all debit, credit, and prepaid cards with EMV chip cards. Their deadline of compliance is June of this year. Penalty fees will be charged to banks that do not comply. Some banks have already announced the total phasing out their magnetic strip cards, eventually rendering them useless, if you still use them.
Now that you've been informed, make sure to drop by your banks or give them a call to ask how you can make the shift to EMV cards today!
Cover and content image from @cobaltpay