Chip, PIN technology key to fraud-free future
March is fraud prevention month and Canadians are encouraged to becomemore aware of the dangers of fraud, to learn how to recognize it,report it and stop it.
March is fraud prevention month and Canadians are encouraged to become more aware of the dangers of fraud, to learn how to recognize it, report it and stop it.
Already in wide use around the world, many Canadians are starting to use a new generation of debit and credit payment cards that contain an embedded microchip and use chip and PIN technology.
Canadians shopping with chip cards at chip-enabled store terminals experience only minor differences in the way they pay for goods. Cardholders insert their chip card into the terminal where it remains for the duration of the transaction and follow the prompts provided on the terminal screen before they remove their card. For credit card chip transactions, cardholders enter a PIN, as they do today with debit cards, rather than sign a sales slip.
Why is the chip card better?
Chip cards and chip card terminals work together electronically validating both the card and the cardholder using a PIN. Chip and PIN is the next evolution of electronic payments in Canada, helping to make an already safe credit and debit card payment system even more secure.
“As fraud continues to evolve, we know it’s important to continue investing in fraud prevention and detection technology,” said Stacy Bennett, RBC’s head of Fraud Strategy and Initiatives. “We’ve also issued over a million chip and PIN cards to our clients giving them enhanced security and peace of mind.”
Canada’s conversion to chip technology will take a few years to complete because millions of credit and debit cards will have to be replaced with chip cards. At the same time merchants across Canada are converting to terminals capable of processing a chip transaction. For the time being, Canadians will continue to see both “chip and PIN” and “swipe and sign” transactions depending on the terminal used. Chip cards will be issued with a magnetic stripe so that cards can continue to be used around the world in countries that have not yet transitioned to chip and PIN technology.
For more information on RBC’s Chip and PIN cards: rbcroyalbank.com/cards/chip
For more information about identity theft and of financial fraud, please visit RBC’s Privacy, Security and Fraud website: rbc.com/privacysecurity/ca/index.html