In modern world, there have been lots of innovations done for ease and need of the people. In terms of Finance, there have been major changes done to make the life of an individual easy and comfortable. With the new mode of payments being introduced, for example- card payment, the risk of security of money has also increased because of theft and fraud. The chip and pin is so designed that the risk of card fraud can be decreased. The chip and pin payments are becoming the safest method of payment for customers.
How chip and pin machine works and its benefits
Chip and pin cards are so designed that they are safe and secure than the old swipe cards. The chip contains information about the card holder whereas the old swipe card contains data regarding card number and expiration date. So, when cards secured with chip and pin are inserted at payment option then it gets associated with the machine and the machine reads the data more securely.
Once the card is authenticated, it ask for a pin number to verify the transaction. In the swipe cards as the card was swiped, the signature was required which could be forged and there was a risk of fraud but the pin number is an identification number which is given to the card holder and he only knows it and hence the cloning of the card is waste which makes the transaction and information of the card holder safe.
However, this card plays an important role in case of theft. If your card gets stolen and is protected by chip and pin then hardly thief can do anything with it.