You may have noticed some changes in the way debit cards and credit cards look these days. That small metallic “chip” that appears on many new cards isn’t for decoration; it’s a powerful new security feature protecting you from fraud and theft. This new technology is called EMV and has been used in many other countries for years with great success. The U.S. has recently begun to make the transition to EMV, which means that you will see more and more of these chip cards in the coming months and years. In fact, you may have an EMV credit card in your wallet already. At Paducah Bank, we have been working diligently to make the transition for our debit card customers smooth and seamless. It’s important to keep in mind, however, that this transition affects more than just financial institutions and their customers – it is a big transition for merchants as well. You may encounter merchants who are not yet prepared to accept EMV cards or who require that you enter your debit card PIN number rather than use it as signature-based. If the merchant does not yet have an EMV-enabled terminal, don’t worry – you can still swipe your EMV card just like a traditional mag-stripe card. In fact, you may prefer to use the swipe method first and wait for the merchant’s card terminal to prompt you to insert your card for EMV. You will begin to see inserting your card rather than swiping becoming more and more of the norm, though.
Look for your new EMV debit card from Paducah Bank in the mail around the time your current card is set to expire. Paducah Bank remains committed to providing excellent service and support for our customers. So, to make this transition easier, we have prepared some FAQs below for your reference. As always, if you have any questions or concerns, your personal banker or any member of the Paducah Bank team will be happy to help you. Please feel free to call us at 270.575.5700 or stop by your favorite branch.
Chip Card Frequently Asked Questions
What is a chip card?
A chip card uses an embedded microchip rather than a magnetic stripe to authenticate payments, providing strong transaction security features and other application capabilities not possible with traditional magnetic-stripe cards. Chip cards also are known as EMV cards.
What does EMV stand for?
It is an abbreviation of Europay, MasterCard and Visa, which have worked closely with Discover and others in the payments industry to spearhead the payments standard.
Why are we replacing our current debit cards with chip cards?
Chip cards increase security and reduce fraud resulting from counterfeit, lost and stolen cards.
Are there other benefits to chip cards?
Convenience while consumers travel is one additional benefit. Many other countries already have adopted the EMV standard, so cardholders can use their new chip card when they travel and it will work seamlessly with the global payments infrastructure.
Is our current debit card risky to use?
We have a lot of security precautions in place to protect against fraud. The chip card offers a higher level of security for chip-enabled point-of-sale transactions, but current cards will continue to be secure – especially if cardholders keep their PIN a secret, regularly monitor card activity and immediately report lost or stolen cards.
When will we issue chip debit cards?
We will begin issuance of EMV cards to all Paducah Bank customers as their cards naturally expire.
Can cardholders request a chip card before their current card expires?
Yes. If cardholders would like a new replacement chip card before their current debit card expires, they can request a new card at any time. Our current fees for ordering a new card and instant issue will apply.
Will chip cards work in older terminals and ATMs?
Yes. For the foreseeable future, chip cards will continue to feature a magnetic stripe so they work on older payment terminals and ATMs.
Is there a difference in how cardholders use chip cards?
Yes, cardholders will insert or “dip” the chip card into the reader. The card stays in the terminal during the transaction, similar to the way some ATMs work today. If cardholders swipe a chip card’s magnetic stripe on a terminal turned on to read chip cards, the terminal may require them to insert their card into the chip reader. Cardholders will also need to remember to pocket their card when done. Online purchases are conducted in the same way as magnetic stripe cards today.
Are there additional fees associated with the chip debit card?
No additional cardholder fees apply to the new chip card versus our current magnetic stripe cards.