Chip Technology and PIN

What are the benefits of the chip card to consumers?

Consumers have a lot to gain from the migration to chip technology. Benefits include:

Why is the industry moving to chip?

The move to chip card technology is the latest innovation in the rapidly–changing debit and credit card environment, and demonstrates the industry’s efforts to further secure Canadian electronic payments.

Migration to chip technology brings with it a number of benefits, both to consumers and merchants. Perhaps the most important benefit that chip cards bring to the Canadian marketplace is the added security. Chip cards are credit and debit cards with computer chips embedded in them, making them more difficult to copy, thereby reducing counterfeit fraud.

Will chip card transactions be conducted differently than magnetic stripe transactions?

Cardholders can expect to see two changes when conducting a chip transaction:

Are you doing away with the magnetic stripe?

Magnetic stripes will co–exist with chip to allow consumers to use their cards in other countries that have not yet migrated to chip technology. Chip terminals will recognize both chip and magnetic stripe cards. In non–chip enabled terminals a signature is required for credit cards and a PIN for debit.

Does the move to chip mean that the magnetic stripe is not secure?

Cardholders should have full confidence in the security of magnetic stripe cards. The migration to chip technology represents a forward–looking evolution of electronic payment systems designed to make an already safe payment system even more secure.

During the transition period to chip, magnetic stripe cards will continue to provide Canadians with a safe, reliable and convenient method of payment. In addition, cardholders can be confident in the protection afforded by the added security features offered by individual payment card companies.

Are chip cards 100% immune to fraud?

Chip represents the highest level of security available to protect payment information and prevent fraud. While no technology is 100 per cent invulnerable, chip cards employ a range of security features and measures that work in concert with each other to create a multi–layered defence against fraud. We are regularly testing our systems and the technology to assure the highest level of security.

Will Canadians be able to use chip cards outside of the country?

Yes. The UK has been using chip and PIN technology since 1997 and many other countries, including Asia have also successfully adopted chip technology. For people traveling to these countries, Canadian chip cards will be fully compatible with these systems. In those countries that have yet to switch to chip technology or do not plan to, cardholders will be able to use their cards since the chip cards will still have a magnetic stripe.

When will chip be fully implemented?

Each financial institution has different policies regarding migration timelines. From an industry level, beginning in 2008 many merchants and cardholders will start to see the introduction of cards that feature chip technology, and within three years of this date, it is expected that the majority of cardholders and merchants will be able to fully benefit from this new technology.

What kind of information will be on the chip card? Will it hold specific details of customer information like date of birth, address, etc.?

There will be no personal information on the chip. Only the PIN number and the applications to approve or decline a transaction at a chip terminal will be housed on the chip.

Why is the USA not going to chip and PIN technology?

Chip and PIN technology is still being evaluated in the USA.

What if I never received my new PIN or forgot my PIN?

Please call the number on the back of your new myHusky Rewards MasterCard: 1-877-541-4563 (between 7:00 AM – 11:00 PM MST) and a MasterCard Service Agent will be pleased to set up a new PIN for you.