Your automated teller machine (ATM) card will be having a new look soon.
In their relentless effort to put an end to ATM scams, local banks have already agreed to use the EMV-chip technology replacing the older magnetic-stripe cards, the Bangko Sentral ng Pilipinas (BSP) said on Wednesday.
In a statement, BSP Deputy Governor Nestor Espenilla said the local banking industry has “reached consensus on what particular EMV to use."
The EMV-chip technology contains unique codes for every transaction, which prevents hackers from stealing information from an ATM card.
The name was developed from the three major credit and debit card issuing companies Europay, MasterCard and Visa.
EMV is said to be the globally accepted answer to fraudulent credit and debit card use.
BSP Memorandum
The BSP has required banks to replace all existing ATM cards using magnetic stripes by January 2017.
The BSP earlier issued Memorandum No. M-2014-040 ordering banks and other regulated institutions to boost their security measures in ATMs and point of sale (POS) devices, such as “an anti-skimming solution, tamper-resistant keypads or video surveillance.”
How does EMV work?
EMV utilizes a small data processing chip embedded in either plastic (such as a debit or credit card) or a mobile device to transmit encrypted information, acting as a secondary form of identification for cardholder transactions.
A typical EMV transaction works like this:
1. Contact: Cardholder touches plated contact point of card to EMV reader.
Contactless: Cardholder or mobile device holder waves card/mobile device within 4cm of EMV reader
2. EMV reader powers the hidden chip, allowing it to communicate encrypted information, generating a code, or cryptogram, to send to the processing host for verification.
3. Host processor decodes encryption, verifies the EMV chip and returns an authorization cryptogram allowing the transaction.
The EMV chip and the card/mobile device holder’s PIN, magnetic strip or signature must be verified in order for the transaction to be valid. This creates the only globally accepted form of 2-factor authentication. (Source: BSP/ABS-CBN/WelchATM)
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