Chip and PIN Credit Cards

There are no Capital One chip and PIN cards. All new Capital One credit cards are chip and signature cards, just like the vast majority of credit cards issued in the U.S. As the name suggests, chip and PIN cards require the cardholder to enter a number at checkout, while chip and signature cards require a signature instead. Chip and PIN cards are a bit more secure because forging a signature is easier to do than figuring out someone’s PIN. Despite this, chip and signature cards are still the majority of the market in the U.S. Outside of the U.S., chip and PIN cards are much more popular. Don’t worry about your card not being accepted abroad, though. Foreign merchants are supposed to take your card regardless of whether or not you have a PIN.

When you have a Capital One card in the U.S., the only time you would need a PIN is for a cash advance. That’s when you use your card to withdraw money from an ATM. But be careful, as cash advances come with high fees. To get a PIN, request it online or call Capital One at 1-844-348-9142.

There are no Chase chip-and-PIN credit cards. All Chase cards issued as of May 2019 are chip-and-signature credit cards. They have a small computer chip embedded inside just like chip-and-PIN cards. The difference is in how you verify your identity when you use the card. With a chip-and-signature card, you have to sign your name when you make a purchase. A chip-and-PIN card requires a four-digit PIN (Personal Identification Number). Naturally, it’s easier to do a false signature than to find out someone’s PIN. So chip-and-signature cards are slightly less secure than chip-and-PIN cards. But both types are more secure than cards that only have a magnetic stripe because they encrypt the data more.

Most chip cards issued in the U.S. are chip-and-signature cards. Chip-and-PIN is much more popular abroad. But you can use Chase chip-and-signature credit cards pretty much anywhere in the world where chip-and-PIN cards are accepted. Merchants are supposed to accept your card even if you don’t have a PIN. You might have trouble using a chip-and-signature card at an automated terminal, though.

Most American Express cards are chip-and-PIN, but some use chip-and-signature technology instead. Credit cards issued by American Express all have chip-and-PIN capability, including the Amex Blue Cash Everyday, Cash Magnet, and Platinum cards. But it varies among cards on the American Express network that are issued by other banks. For example, the Wells Fargo Propel American Express Card is a chip-and-PIN credit card, while the US Bank Cash 365 Amex is a chip-and-signature card. Both types comply with EMV (Euro Mastercard Visa) standards for chip-based cards.

Chip cards are embedded with a computer chip for added security. The difference is in the cards’ verification method: the cardholder’s signature or a 4-digit PIN. Chip-and-PIN cards are more secure than chip-and-signature cards because signatures required for purchases can easily be forged, and often go unchecked. Guessing someone’s PIN isn’t so easy. Both types of chip cards still provide better protection than cards that only have magnetic stripes. That’s because chip cards are encrypted in a way that makes it nearly impossible for anyone to access the card’s information, so long as the card is inserted into a reader rather than swiped.

Most chip cards issued in the U.S. are chip-and-signature cards. Chip-and-PIN cards, however, are the standard in most other countries. But you can still use a chip-and-signature card abroad with few issues.

Chase Sapphire Reserve® is not a chip and PIN card, it’s a chip and signature card. When it’s time to pay, you’ll have to insert your card into the machine (or sometimes swipe it), and then you may be asked to sign the touchpad or receipt to confirm the transaction. But you can still use Chase Sapphire Reserve most places that accept credit cards around the world, including most terminals equipped to accept chip and PIN cards. Chip and PIN is common in a lot of countries, like pretty much all of Europe, Mexico, Canada, South America and Asia. And Chase says Sapphire Reserve cards will work fine there.

Here’s how to use Chase Sapphire Reserve with chip and PIN terminals:

• U.S. terminals often require only a swipe or chip insertion. And if they ask for further verification, it’s typically a signature, not a PIN.
• If you encounter a merchant who asks for a PIN, Chase says to tell them your card doesn’t need one. 
• If an unmanned kiosk asks for a PIN, you should be able to bypass it by pressing “Cancel,” “Enter” or “Continue.” 
• If the merchant or terminal really won’t take your card without a PIN, you may have to just pay in cash or use an alternate card. 

It’s also good to note that if you’ve been a Sapphire Reserve cardholder for a long time, you could have an older version of the card that only has a magnetic stripe. If you request a replacement card, the new one will come with a chip. You can request a new card by calling Chase customer service at 1-800-935-9935 or by logging in to your online account.

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.

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.

To use a chip card, insert the chipped side of the credit card into the slot at the bottom of the card reader, chip facing up. Keep the card in the reader and follow the instructions on the screen. When the transaction is complete, the screen will tell you to remove your card from the slot.

If the retailer has not yet switched to a chip card reader, you can still swipe the card’s magnetic stripe. The magnetic stripes on credit cards still work – but if the swipe is a fraudulent purchase, the retailer is on the hook for any losses if they haven’t upgraded their payment equipment to accept chip cards. That’s why most retailers have installed chip readers at this point.

How to Use a Chip Credit Card:

1. Insert the credit card into the slot at the bottom of the card reader, chip-side up. Make sure the chip goes into the slot completely.
2. Follow the directions on the screen.
3. Keep the credit card in the slot until the transaction is completed.
4. Remove your credit card when instructed. Depending on the retailer, you may be asked to sign for the purchase.

Chip cards are safer than traditional credit cards that only have magnetic stripes. The term “chip card” refers to a credit card that has a computer chip embedded inside it. The chip is the small, metallic square on the front of any recently-issued credit or debit card. When you “dip” a chip card in a reader (as opposed to swiping a magnetic stripe card), it creates a unique transaction code.

This technology is a major security upgrade from magnetic stripes. Data stored within the stripe never changes. So it’s easier for counterfeiters to copy that information and clone it onto an illegitimate card.

But it’s important to note that chip cards do still have magnetic stripes because not all merchants have card readers capable of accepting chip cards. As a result, chip cards are not as safe as they could be. The magnetic stripe could still be copied, allowing fraudsters to make purchases where a chip is not required.

Chip cards are also known as smart cards, or EMV cards. EMV stands for Europay, Mastercard and Visa – the companies that developed the new standard for card security and verification. Chip cards play a big role in that, making payments safer for all of us.

Here is why chip cards are safer:

• Difficult to clone: When you “dip” a chip card, it creates a unique code for that transaction. When you swipe a magnetic stripe, the same information is relayed every time, making it easier for someone to copy and misuse.
  
• Sophisticated encryption: Chip cards have encryption technology built right into the microchip. When a transaction happens, the chip creates a unique transaction code that cannot be used again and sends it to the issuer for verification.  
• Chip-and-signature vs. chip-and-PIN: Most chip cards distributed in the U.S. are chip-and-signature cards. They’re not as safe as chip-and-PIN cards because it’s easier to forge someone’s signature than to guess their PIN. Both are still safer than magnetic stripe cards.

Chip cards are safer than magnetic stripe cards, but the added security is only as good as the merchant’s ability to process chip card transactions. If a store does not have a point-of-sale device that’s chip-enabled, meaning there’s no slot for you to dip your credit card, then your transaction will be processed using the magnetic stripe on the back of the card. Your transaction will be less safe as a result.

Chip credit cards can be “hacked,” in a sense. If a thief inserts a “skimming” device into a credit card terminal, they can copy data from your credit card and later make a copy of the card. However, skimmers can only copy data from your card’s magnetic stripe, not its chip, which is much more encrypted. Therefore, any copy of your card will only have a magnetic stripe. That means criminals can’t use it any merchant that has a chip reader.

EMV chip cards enabled with contactless technology could also be at risk of NFC skimming. A contactless card uses NFC (Near Field Communication), a secure wireless technology that allows data to transfer from a mobile device to a card reader at a short distance. Someone close enough to you could use a scanning device to intercept the NFC signal and steal the card’s information.

In general, chip cards are safer than cards that only have a magnetic stripe. When you insert, or “dip,” a chip card rather than swiping it, the card’s built-in microchip and other security measures make it far more difficult for fraudsters to copy the card’s sensitive information.

Yet despite the security that chips provide, all chip cards still come with magnetic stripes. They’re necessary because not all merchants have payment terminals that can process chips. If a merchant does not have a chip card reader, you’ll have to swipe the card. This deprives you of the extra security protections built into the chip and leads to a greater risk of fraud.

It’s also important to note that cards with chip-and-PIN technology are more secure than chip-and-signature credit cards, yet most U.S. chip cards still come with the latter. They require a signature for purchases instead of a four-digit PIN. So if someone steals your card, they can forge your signature and make purchases.

If your chip credit card is hacked, skimmed or stolen, all major issuers have a $0 fraud liability guarantee on all of their credit cards. That means you won’t have to pay for the fraudulent transactions.

A chip-and-PIN credit card works a lot like a traditional debit card at an ATM. 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 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.

For the consumer, nothing really changes when it comes to chip and PIN online purchases. You just use your card as you would use any other credit card. 

You won’t be held liable for fraudulent transactions in most cases, as long as you alert your card issuer.