Money Analysed

EMV Chip-and-PIN Cards: The Future of Secure Transactions

Introduction to EMV Chip-and-PIN Cards

In today’s world, we carry credit and debit cards everywhere we go, making transactions simpler and more efficient. However, there are still dangers associated with it, mainly due to card skimming fraud, where criminals steal card details.

Therefore, various technologies have evolved over the last decade to prevent such frauds and increase the security of our cards. One such technology is the EMV Chip-and-PIN card, which is becoming increasingly popular worldwide.

But what makes EMV Chip-and-PIN cards different from the traditional magnetic stripe cards? Why are they not common in the United States?

In this article, we will answer these questions and more, providing you with complete knowledge on the topic.

Difference between Magnetic Stripe and

EMV Chip Cards

Magnetic Stripe Cards

Magnetic stripe cards, also known as magstripe cards, are the most common type of credit cards that we use today. The card’s information is stored in the magnetic stripe, which is a brown or black band on the back of the card.

When we swipe the card on a point-of-sale (POS) terminal or ATM, the machine reads the information on the stripe to complete the transaction. Although magstripe cards are convenient, they come with some disadvantages.

Card skimming, where criminals use a special device to copy the magnetic stripe data on the card, is a significant danger associated with these cards. They are also easy to duplicate, making it easy for fraudsters to make counterfeit cards and use them.

EMV Chip Cards

EMV Chip cards, also known as smart cards, have a built-in microchip that stores all the card’s information. When we insert the card into a POS terminal or an ATM, the machine reads the chip’s information to complete the transaction.

Additionally, the chip generates a unique code for every transaction, making it challenging to clone or counterfeit the card. Compared to magstripe cards, EMV Chip cards offer enhanced security, making them the preferred choice for many countries worldwide.

Why Chip-and-PIN Cards are not Common in the U.S.

The United States is one of the few countries that still relies on magnetic stripe cards, even though they pose significant security risks. One of the primary reasons for this is the cost associated with implementing the new technology.

EMV Chip cards require upgraded point-of-sale (POS) terminals to read the chip, which can be expensive for merchants. In contrast, most other countries have adopted chip technology, and the cost of implementation has decreased significantly.

The U.S. was also one of the early adopters of online payment technologies like PayPal and Venmo, which took away the urgency for merchants to upgrade their payment systems. However, many credit card issuers in the U.S. have started to provide EMV Chip cards to their customers.

Let’s have a look at some of the chip-and-PIN cards available in the U.S.

List of 4 Chip-and-PIN Cards Available in the U.S.

1. Chase Sapphire Preferred Card – This card offers generous reward points on travel and dining expenses.

It also has an EMV chip with PIN capability. 2.

Bank of America Travel Rewards Credit Card – This card features no foreign transaction fees and EMV Chip-and-PIN technology. 3.

Wells Fargo Propel American Express Card – This card offers triple points on travel, dining, and streaming services. It also features an EMV Chip with PIN.

4. State Department Federal Credit Union Visa Platinum Card – This card features no foreign transaction fees, EMV Chip-and-PIN technology, and a low annual fee.

The Platinum Card from American Express

Amongst the plethora of credit cards in the market,

The Platinum Card from American Express stands out with its notable benefits and perks.

Card Details and Rewards Rate

The card comes with a high annual fee of $550, but that is quickly offset by the numerous rewards it provides. Cardholders earn five points for every dollar spent on flights and hotel bookings through the Amex Travel portal.

Additionally, they earn one point per dollar spent on other purchases.

Benefits of the Card for Travelers

The Platinum Card from American Express provides cardholders with a range of travel benefits. They get access to more than 1,000 airport lounges worldwide, including Centurion Lounges, Delta Sky Clubs, and Priority Pass Select Lounges.

Cardholders can also use a $200 annual airline fee credit to pay for charges like checked bags, in-flight meals, and seat selection. Additionally, cardholders receive a $100 credit for Global Entry or TSA PreCheck application fees.

Other Perks and Benefits of the Card

Apart from travel benefits,

The Platinum Card from American Express also provides other rewards. Cardholders can receive up to $200 a year in Uber credits and can use the card to earn statement credit on purchases at select merchants.

Cardholders also gain access to exclusive entertainment events and activities, and dedicated concierge assistance for various services like booking restaurants, buying tickets, and more.

Conclusion

In conclusion, we hope this article has provided you with valuable information on EMV Chip-and-PIN cards and the various credit cards available in the market. Knowing the benefits of the new technology, we hope more merchants in the United States will embrace it and make transactions more secure for cardholders.

3) Barclays AAdvantage Aviator Red World Elite Mastercard

If you are an American Airlines loyalist, the Barclays AAdvantage Aviator Red World Elite Mastercard should be on your radar. This card offers a range of benefits and rewards for those who frequently travel with American Airlines.

Card Details and Rewards Rate

The card comes with a $99 annual fee, but it is offset by the numerous rewards it offers. Cardholders earn two miles for every dollar spent on eligible American Airlines purchases.

They also earn one mile per dollar spent on other purchases. With these rewards, cardholders can redeem them for various perks and benefits from American Airlines.

Benefits of the Card for American Airlines Travelers

One of the card’s biggest perks is that cardholders receive a free checked bag on American Airlines flights, saving $30 per flight. Additionally, the card offers preferred boarding for cardholders, allowing them to board after first-class and elite status passengers.

Cardholders also earn a $125 American Airlines flight discount after spending $20,000 on purchases. The card comes with no foreign transaction fees, making it an excellent choice for international travel.

Other Perks and Benefits of the Card

Apart from American Airlines benefits, the Barclays AAdvantage Aviator Red World Elite Mastercard offers other rewards. Cardholders can receive up to $25 back as statement credit each year for inflight Wi-Fi purchases.

Additionally, they can earn a $99 companion certificate after spending $20,000 on purchases each year. Cardholders also gain access to Mastercard World Elite benefits, including travel assistance, concierge services, and travel accident insurance.

4) Navy Federal Credit Union Visa Signature Flagship

The Navy Federal Credit Union Visa Signature Flagship card is an excellent choice for Navy Federal Credit Union members who want to earn rewards and receive excellent benefits.

Card Details and Rewards Rate

The card comes with a $49 annual fee, but it is waived for the first year. Cardholders earn three points for every dollar spent on travel and two points for every dollar spent on everything else.

These points can be redeemed for rewards like cashback, merchandise, and travel-related expenses.

Benefits of the Card for Navy Federal Credit Union Members

One of the biggest benefits of the Navy Federal Credit Union Visa Signature Flagship card is the exclusive access to Navy Federal Credit Union’s Signature Program. This program includes benefits like exclusive travel offers, 24/7 concierge service, and tailored financial advice.

Additionally, the card offers no foreign transaction fees, making it ideal for members who frequently travel abroad.

Other Perks and Benefits of the Card

The Navy Federal Credit Union Visa Signature Flagship card also offers other rewards. Cardholders receive a $100 statement credit on Global Entry or TSA PreCheck application fees.

They also gain access to various travel and purchase protection benefits, such as travel accident insurance and extended warranty coverage. The card comes with Visa Signature Luxury Hotel Collection benefits, including complimentary breakfast, room upgrades, and late checkout.

Conclusion

Credit card rewards and benefits can significantly enhance the satisfaction of the cardholder’s travel and purchasing experiences. If you are an American Airlines traveler or a Navy Federal Credit Union member, you should consider applying for the Barclays AAdvantage Aviator Red World Elite Mastercard or the Navy Federal Credit Union Visa Signature Flagship card.

With the rewards and benefits these cards offer, you are sure to get more value for every dollar spent.

5) PenFed Power Cash Rewards Card

The PenFed Power Cash Rewards Card is a straightforward cashback card that offers a competitive rewards rate and some valuable benefits for PenFed members.

Card Details and Rewards Rate

The card comes with no annual fee, making it an excellent option for those who don’t want to pay for their rewards. Cardholders can earn 1.5% cashback on all purchases, making it an easy way to earn cashback on your everyday expenses.

Benefits of the Card for PenFed Members

One of the significant benefits of owning a PenFed Power Cash Rewards Card is that you don’t need to be a PenFed Credit Union member to apply for this card. However, if you are a member, you can earn bonus rewards on eligible purchases, making it even more rewarding.

Additionally, the card offers a $100 statement credit for spending $1,500 within the first ninety days of account opening. PenFed members can also receive a range of exclusive benefits, such as lower rates on loans and mortgages, and access to high-yield savings accounts.

Other Perks and Benefits of the Card

The PenFed Power Cash Rewards Card offers other benefits for cardholders. The card offers travel accident insurance and auto rental collision damage waiver coverage.

The card also comes with extended warranty coverage, purchase protection, and price protection, making it a valuable option for those who frequently make purchases.

6) Chip-and-Signature Cards

Chip-and-PIN cards and chip-and-signature cards are two types of EMV cards that are increasingly popular worldwide. They both use the chip technology to increase card security and reduce fraud.

However, there is a difference between the two types of cards.

Difference between Chip-and-PIN and Chip-and-Signature Cards

Chip-and-PIN cards require users to enter a personal identification number (PIN) to authorize transactions. In contrast, chip-and-signature cards require the user to sign for transactions like traditional magnetic stripe cards.

While both types of cards are more secure than magnetic stripe cards, chip-and-PIN cards offer an additional security feature that chip-and-signature cards cannot provide.

Popular Chip-and-Signature Travel Cards

If you are looking for a chip-and-signature travel card, several options offer rewards and benefits for frequent travelers. The United Explorer Card from Chase offers a range of airline-specific benefits including priority boarding, two United Club one-time passes each year, and a free checked bag on United flights.

The card earns two miles per dollar spent on United purchases and one mile per dollar spent on all other purchases. The Bank of America Travel Rewards credit card offers no annual fee and a rewards rate of 1.5 points per dollar spent on all purchases.

The card comes with no foreign transaction fees and offers additional rewards to Bank of America banking customers. The Capital One Venture Rewards card offers two miles per dollar spent on all purchases and a range of travel and purchase protection benefits.

The card offers no foreign transaction fees, making it an excellent choice for international travel.

Conclusion

Whether you are looking for a simple cashback card or a chip-and-signature travel card, there are numerous options available that offer excellent rewards and benefits. By carefully considering your spending habits and card preferences, you can find a card that fits your needs and makes your transactions more secure and rewarding.

FAQs

Here are the answers to some frequently asked questions about chip-and-PIN cards in the U.S.

Can you get a chip-and-PIN card in the U.S.? Yes, you can get a chip-and-PIN card in the U.S. However, they are not as widespread as they are in other countries, and it may be challenging to find one from a major credit card issuer.

Some credit unions and smaller banks may offer chip-and-PIN cards to their customers. List of U.S. Credit Cards that are Chip-and-PIN

Here is a list of some U.S. credit cards that are chip-and-PIN:

1.

State Department Federal Credit Union Visa Platinum Card

2. UNFCU Elite Visa Card

3.

Andrews Federal Credit Union Visa Credit Card

Is the Chase Sapphire Reserve a Chip-and-PIN Card? No, the Chase Sapphire Reserve is not a chip-and-PIN card.

The card is a chip-and-signature card, which means it does not require a personal identification number (PIN) for transactions. However, the card is widely accepted internationally, and it features no foreign transaction fees, making it an excellent choice for travelers.

Why Don’t the U.S. Use Chip-and-PIN Cards? The U.S. was one of the last countries to adopt EMV chip technology and remains one of the few countries that use magnetic stripe cards predominantly.

One of the primary reasons for this is the cost of implementing the new technology. Upgrading point-of-sale (POS) terminals to read the chip requires significant financial investment from merchants and banks.

Moreover, the U.S. was an early adopter of online payment technologies like PayPal and Venmo, which take away the urgency for merchants to upgrade their payment systems. In contrast, most other countries have adopted chip technology, and the cost of implementation has decreased significantly.

Finally, there is a lack of regulatory pressure to push for chip-and-PIN adoption in the U.S.

Conclusion

In conclusion, while chip-and-PIN cards are not as prevalent in the U.S. as they are in other countries, there are still ways to obtain one. With the growing need for increased payment security, we may see more credit card issuers in the U.S. begin to offer chip-and-PIN cards in the future.

By understanding the benefits of chip-and-PIN cards and taking advantage of the available options, consumers can enjoy enhanced security and improved payment convenience. In this article, we have explored different types of credit cards that offer rewards and benefits to their users, including EMV Chip-and-PIN cards, Chip-and-Signature cards, and specific travel cards.

We have seen that chip-and-PIN cards are more secure than magnetic stripe cards and that several credit cards offer chip-and-PIN technology in the U.S. We have also discussed the differences between chip-and-PIN and chip-and-signature cards, and we have given some popular travel cards. Finally, this article answered some frequently asked questions regarding chip-and-PIN cards in the U.S. and explained the reasons behind the slow adoption of the technology.

Our takeaway is that credit card users must consider their requirements and lifestyle to make the most of these cards’ benefits and rewards.

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