As both a consumer or a business owner, using a debit or credit card to make a payment is almost second nature. In fact, most people do not even carry cash on them any longer.
Swiping a credit card is so much more convenient, but how safe is it really?
Additionally, what is the difference between a credit card chip vs swipe card? Which ones offer the most safety features? Is there a real difference in how they are used?
We’ll cover all these questions in this article.
Credit Card Chip Safety
In the past, in order to use your credit card you would need to swipe the magnetic strip through the card reader. This allowed the machine to read the information from the card and then the payment was processed.
Most companies have now switched to using a chip reader. The main reason for this is security. It was too easy for the magnetic stripes to be copied and then used by someone else. The chip makes stealing information from a card much more difficult.
When using a chip reader, the machine will read the information stored on the chip. This information is encrypted, so it is much more difficult for someone to steal your credit card information. The machine will then process the payment and you will be able to complete your purchase.
Contactless Credit and Debit Cards
Another option that you might see when paying with your credit or debit card is the option to use contactless pay. This means that you do not have to insert your card into the machine or swipe it. You can simply hold it near the reader and the payment will be processed.
While this might be more convenient, it is not the most secure way to pay. If someone was able to get a hold of your card, they could easily use it to make a purchase without you even knowing.
For this reason, it is important to keep your card close to you at all times when using a contactless payment method.
Conclusion
Overall, credit card chips make it much harder for someone to steal your credit card information since the data is encrypted. Contactless credit and debit cards are more convenient but less secure since they can be easily stolen. For the most secure payment, use a credit card with a chip reader.