New Delhi: As mandated by the Reserve Bank of India (RBI), all the scheduled commercial banks, microfinance institutions and other card-issuing entities have replaced the old ATM-cum-debit cards with the new Europay MasterCard Visa (EMV) chip-based ATM-cum-debit cards. The prime objective behind replacing the old ATM-cum-debit cards with EMV chip-based ATM-cum-debit cards was to ascertain more secure transactions, reduce the chances of fraudulent activities such as card phishing, cloning.
The magstripe-based ATM-cum-debit cards were less secure than the EMV chip-based debit cards as the technology involved in EMV chip-based cards is new and more dynamic as compared to the old debit cards. Europay Mastercard and Visa have collaboratively developed the new cards with enhanced safety features especially accustomed in tackling the issues such as card skimming and cloning.
EMV chip-based cards: Things you should know
In EMV chip-based cards, the personal and confidential information is stored in the microchip embedded in the card which makes it hard to copy as the reader is placed deep inside the ATM kiosk. While, in case of magstripe-based cards, the data was stored on the magnetic stripe following which it was relatively easier for the fraudsters to place a copying device in the ATM.
Fraudsters can’t put a device deep inside the ATM kiosk as it will restrict the card entry and the data stored on the microchip can be read by a thin device as in case of magstripe-based cards. Further, EMV chip-based card generates fresh transaction-specific data upon each entry which makes it less traceable. In order to transact through the EMV chip card at PoS (Point of Sale), a PIN is required, while, a transaction can happen without entering a PIN via magstripe-based card.
Upgrade now, if not using EMV chip-based cards still
The individuals who have not updated the old debit cards can obtain the new EMV chip-based cards from the respective banks. The old debit cards which are now defunct can’t be used for withdrawing cash from ATMs, purchases made via PoS and online shopping too, however, a user can withdraw cash by visiting the bank branch and can avail all other transfer and remittance facilities directly from the bank.