People often use credit cards when shopping in stores, on the Internet, and by making electronic payments. There are several ways to pay by credit card. In the United States, credit cards with magnetic bands are mostly used, but nowadays, credit cards with chips and PIN codes are used more securely and extensively.
US residents have been using magnetic stripe cards for a very long time. When paying with this type of credit card, it is necessary to remove the card from the merchant card reader to the location of the card, so that the card reader receives the information provided by the magnetic stripe. Magnetic band includes information on snurl such as credit card holder's full name, credit card number that work, card expiration date, and other data.
For credit cards with a magnetic stripe, the next payment processing step is to press the "OK" button - the cardholder confirms the amount of the payment amount and then has to sign. The subscription process takes place on the electronic screen provided by the merchant. This credit card process is currently being replaced by chip and PIN code credit cards, so Americans and others who are accustomed to paying for purchases and services in this way should already switch to chip and PIN code credit cards.
The use of magnetic stripe credit cards is also an opportunity to act as thieves and credit card counterfeiters, because the security system of this type of credit card is much lower and fraudsters are already used to bypassing it. Such a credit card will no longer be practiced. In addition, as modern technologies evolve, there is no longer any need for direct contact with the card reader, the terminal - the credit card can be activated by holding it near the card terminal. So the magnetic band is definitely no longer needed and is an outdated technology.
The chip and PIN code payment system has been practiced in many parts of the world for a long time. Credit cards with chips are used by customers using the services of EMV organizations - Euro pay, MasterCard and Visa. Chip and PIN code credit cards are very similar to magnetic stripe credit cards, but the functioning system is completely different. These credit cards include small chips that work just like small computers. These chips contain not only the kind of information contained in the magnetic stripe but also serve as a data processor. One of the main reasons why chip and PIN code credit cards are more secure is the fact that, in the process of processing data with the card terminal, chips use cryptography or coding and decoding methods to protect against unwanted data reading. The chip itself is activated as such only when it is in contact with the credit card reader.
In order for a credit card holder to pay for a purchase or credit card service based on a chip and PIN code system, it is necessary to insert the card into a special credit card reader, which is now available in almost all stores and businesses. Earlier, to complete the billing process, the store cashier or another service provider printed a check, which then had to be signed by the card user. Now, to complete your payment, you only need to enter a PIN known to the credit card user. If the code is entered correctly, the credit card owner has paid for it. However, you may not enter the PIN correctly for the first time. This may be due to negligence or other distractions. You can enter the PIN code 3 times before the card is locked and can no longer be used.
As time passes, credit card companies are also starting to use the same system credit cards that no longer require direct contact with the credit card reader. In such cases, the credit card chip activates when it is close to the card terminal.
The chip and PIN code system has another advantage that was not magnetic stripe credit cards - to make a payment with the credit card of the new system, the card reader does not have to be connected to the phone or connected to the Internet to process the payment.