My daughter recently misplaced her debit card.
Today’s post is by Troy Lowe; Vice President of Development at SafeSourcing.
My daughter recently misplaced her debit card and had to contact the bank to send her a new one. This is something that occurs now and then and when it happens it usually takes seven to ten business days to receive a new one in the mail. Well, it’s been past that time period now so I went online and discovered that the ongoing chip shortages are affecting the cards as well and it can now take almost two months to receive a new card when it is requested from the bank. From some of the articles that I read this longer delay could be the case though the end of the year. What I didn’t know was the banking industry is in competition with the auto manufacturing industry because they use the same kind of technology for their chips. This competition has created a higher demand for the chips and is causing the longer delays we are seeing from the banks. The chips were added to the cards a few years ago to ensure more security when used in the card readers. The chip cards contain a gold or silver microchip that is embedded in the front of the credit or debit cards. Just like the magnetic strip that is located on the back of the card, the microchip contains the account information about the account that is connected to the card. When the card is inserted into the chip reader like at a local store or gas station the customer’s information is read from the chip and if the account balance is available the transaction is approved. If it does not then the transaction is denied, and the purchase does not go through. This chip makes it harder for people to skim your card for account information because the information has an extra layer of encrypted security that does not exist within the magnetic strip. When the chip is used it generates a unique code for each transaction made. This code is generated using complex algorithms which makes it difficult to replicate and makes it almost impossible for someone to create a fake chip card. So when making your future purchases if you have a choice between swiping and inserting the chip, insert the chip for a more secure transaction.
If you need help with any of your security needs, feel free to contact SafeSourcing. We can gather all the necessary information for you and help you decide which company meets your needs. If you would like more information on how SafeSourcing can help you, please contact a SafeSourcing Customer Service representative. We have an entire team ready to assist you today.