Chip cards or smart cards can store encrypted confidential information, which significantly helps to protect your card against counterfeit fraud. Find out why smart cards are a more secure way to make payments
What are smart cards?
Smart cards are payment cards carrying an embedded microchip. Compared to existing magnetic stripe cards, the computing power of the chip means that smart cards can offer new payment options and services, greater security, and more convenience and choice.
How do they make payments more secure?
Smart cards can protect against ‘skimming’ or copying the contents of the magnetic stripe. If they are used in conjunction with a personal identification number (PIN), they can also reduce lost and stolen fraud significantly. When you use your card at the point of sale, the chip card sends a secret message to authenticate every transaction. This secret message changes for every transaction, making it harder for a fraudster to steal the information.
Where can I use a smart card?
During the 12 months ended 31 December 2006†, there were more than 1.68 million chip-enabled point-of-sale payment terminals deployed in 18 markets around the region -Australia, Cambodia, China, Hong Kong, India, Indonesia, Japan, Korea, Macau, Malaysia, Maldives, New Zealand, Pakistan, Philippines, Singapore, Taiwan, Thailand and Vietnam. Smart cards can be used at merchant locations worldwide and on the internet.
† As reported by member financial institutions in the Asia Pacific region and therefore may be subject to change.
What other benefits do smart cards offer?
In addition to protecting against fraud, smart cards help to consolidate your wallet through the ability to combine multiple functions on one card, such as reward programs, discounts, special offers etc. With smart cards, you enjoy the added convenience of carrying less cash.