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Most of us have been issued the new cards that come equipped with the embedded chip feature that is supposed to provide added security against fraudulent use of our card. Typically, you use the card at a retail kiosk that should now have a terminal that allows you to insert your card into a reader, rather than swiping it the old way. Many terminals have the chip card reader, although the store still instructs users to swipe their cards. The problem with this is that it bypasses the chip security feature. It also absolves the retailer from taking the fall for illicit use of your card since the bank requires your card be inserted into the reader (not swiped). The customer bears the responsibility for any stolen funds.

It is recommended that if you are asked by a retailer to swipe your card, pay by cash instead or simply shop elsewhere. On a personal note, I do have a card with the chip feature. My card was accessed by unknown thieves about a week ago. I'm not sure how it happened but suspect it may have been at a local restaurant (where I actually handed my card to the server).  Who knows for sure?? Luckily my bank caught it after the first fraudulent purchase. Best thing is to check your statement or online account usage often.

2 Answers

+1 vote
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I only use my debit card but it does not contain a chip.

0 votes
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I think I have.

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