Why do credit cards have chips?

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.… read full answer

Such transactions are the norm in many countries and are becoming increasingly common in the United States, as the country transitions to EMV payments. But chip-based cards still come with magnetic stripes because there are many places where you won’t be able to use the chip-and-PIN feature. You will have to swipe your card, like with a normal credit card.

You should have received a PIN with your card, but you can always set it up later or change it by getting in touch with your credit card issuer.

Feel free to check out some of the best chip-and-PIN credit cards and pick one according to your individual needs and credit standing. You can use the filters on the left sde of the page to sort the cards according to your preferences.

Chip cards can be skimmed because of the magnetic strip that still exists on these cards. Skimming is a common scam in which fraudsters attach a tiny device, or “skimmer,” to a card reader. They tend to target places like ATMs and gas stations. When you use your card at one of these readers, the device intercepts and copies sensitive card information from the magnetic stripe. Thieves can then retrieve the stolen data and can either clone the card or sell the card number to other scammers. Information on a chip card’s embedded microchip is not compromised.… read full answer

Magnetic strip cards are inherently vulnerable to fraud. Their flaws have led to the transition to chip-enabled, or EMV (Euro, Mastercard, Visa) cards, which offer tighter security measures to combat potential fraud and identity theft. However, many merchants in the U.S. still lack readers that can effectively process chip card transactions. As a result, credit cards and debit cards are still issued with magnetic stripes, and the security risks that come with them.

With that being said, all the major credit card networks offer a $0 liability guarantee for fraudulent credit card transactions. If your chip card is ever skimmed, you won’t be responsible for any fraudulent charges. In addition, federal law limits your liability to $50 if you report any fraudulent charges within 60 days of them appearing on your credit card statement.

Yes, you can use a credit card without a PIN. You only need one if you plan to use your card for cash advances at ATMs. You may also need a PIN to make purchases at automated kiosks when traveling abroad. However, besides these two exceptions, no PIN is necessary to make a purchase with a credit card.… read full answer

If you need a PIN for certain transactions, you can generally request it online, over the phone, or at a branch, depending on the credit card issuer.