Theresa Chalfant, Writer
@theresa_chalfant
Chip-and-PIN cards work roughly the same way as chip-and-signature cards or any other type of credit card when used online. Chip-and-PIN technology is used to verify your card information in person, while the 3 to 4-digit security code on the back of your card is typically used for online transactions instead.
The chip keeps your card secure by encrypting your information and generating a unique code for every in-person transaction. This isn’t possible for online transactions, since there’s nothing on the website that can actually read the information stored in the chip the way a card reader does. However, you can get a similar level of security with a virtual credit card, which generates a unique card number, expiration date, and security code to protect your actual card information online.
You can learn more about credit card chips and how they work from WalletHub’s full guide to EMV chip cards.
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People also ask
How does chip and PIN work?
A chip-and-PIN credit card works a lot like a traditional debit card at an ATM. However, when making purchases, rather than swiping a magnetic stripe credit card, you insert (or “dip”) a chip-and-PIN card into a payment terminal and follow the prompt to input your PIN. The PIN is then compared to information stored on the embedded computer chip, and the transaction is either approved or denied.
Such transactions are the norm in many...
read full answer by John S Kiernan, Managing EditorDo online purchases require a credit card PIN?
No, online purchases do not require a credit card PIN. Instead, you may be asked to provide the 3 or 4-digit CVV in order to confirm your identity. The CVV is usually found on the back of your card.
PINs are required for cash withdrawals at an ATM, or to verify in-person transactions. When you input the PIN at the POS, it is then compared to information stored on the card’s embedded chip, and the transaction is either approved...
read full answer by John Miller, Credit Cards ModeratorCan chip cards be read remotely?
Yes, chip credit cards can be read remotely, but only if they have contactless capabilities. A chip-only credit card has to be dipped into a card reader in order to complete the transaction. That’s because the chip does not transmit any signal that can be picked up from a distance by a card reader or a fraudster.
Contactless-enabled chip credit cards, on the other hand, use radio frequency identification (RFID) technology, which allows you to complete a...
read full answer by John Miller, Credit Cards ModeratorDid we answer your question?
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