Banks across India are slowly transitioning from magnetic stripe cards to EMV chip cards, and chances are that your bank would have already issued one to you.
The original directive was issued by the Reserve Bank of India (RBI) in 2015, as the older ‘magstripe’ cards were an easy target for skimming and highly susceptible to frauds and scams.
However we need to pay attention to how the EMV chip-based cards are used at ATMs. Most of us are used to the swiping method but doing the same with a chip-based card will damage it.
These new cards need to remain inserted in the ATM card slot during the entire transaction.
If you happen to access any new ATMs whose card slots might look like the older ‘insert and remove’ variant, make sure you do not swipe the card and keep it inserted in the slot throughout the transaction.
If you forcefully try to remove the card while mistakenly thinking that it is stuck in the ATM slot, the damage might not just be extensive but possibly permanent.
So, in case you have just upgraded to an EMV-based chip card, here’s what you’ll need to do:
Insert the card, select banking options and then enter the pin to process the transaction.
Under the new system, the ATM will prompt you to take back the card right before it dispenses cash. Again, do not try to forcibly pull out the card during the transaction.
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What makes these EMV cards different and a step ahead of the magstripe ones is that the payment data is contained on a chip-enabled payment card.
In the case of the latter, the data is static and doesn’t support dynamic authentication, making it relatively easier for frauds to occur—by using skimming devices to copy data.
This shortcoming is being reportedly resolved by EMV cards, thanks to their effectiveness in combating counterfeit frauds with their dynamic authentication features.
(Edited by Gayatri Mishra)