The card from the ATM will be “wiped out” and replaced with a chip card, what are the differences?

Tram Ho

Recently, the State Bank of Vietnam (SBV) has just announced that it will stop issuing cards from ATMs from March 31, 2021, completely replaced by chip cards. However, many users are still wondering about the difference between these two cards.

Thẻ từ ATM sẽ bị xóa sổ và được thay thế bằng thẻ chip, chúng khác nhau như thế nào? - Ảnh 1.

What is magnetic card?

Magnetic cards have a relatively low level of information security because the information stored on the magnetic stripe on the back of the card is not encrypted.

When the customer plugs the card into the ATM machine or swipes the card on the POS machine, the personal information stored in the back black magnetic strip will be read by the reader in the machine, so only a common magnetic swipe device is needed. in the market, fraudsters can easily steal card information.

Then, they also easily create fake cards with the copied information above, and attach devices to secretly record the customer’s PIN entry. With a fairly simple appropriation method, the crook can steal money from the customer’s bank account. This is a fairly common form of property appropriation today.

What is a chip card?

A chip card is a debit or credit card that is about the same size as a regular ATM card and contains a chip on the front of the card.

This chip will encrypt information to increase data security when making transactions at card swipe machines in stores or automatic teller machines (ATMs). Chip cards are international payment cards, so all global transactions are also a plus point of this card.

Currently, many Vietnamese banks have international credit and debit cards with chips such as VIB, VietinBank, VietcomBank, Techcombank, ACB, Sacombank, South Asia Bank …

Thẻ từ ATM sẽ bị xóa sổ và được thay thế bằng thẻ chip, chúng khác nhau như thế nào? - Ảnh 2.

In addition, the chip card currently on the market also comes with a contactless touch card feature , to enhance security and limit the hand contact of others to the personal ATM card.

To pay a transaction, you just need to touch the card to the card swipe machine, no need to put the employee swiping the card or insert the chip into the machine.

Contactless touch card will have a wave bar symbol next to the chip, this is a sign for you to know that your ATM card can make touch payment.

In addition, from March 31, 2021, banks will have to completely convert to chip cards for the security and safety of customers.

Photo source: Internet

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Source : Genk