Why did financial institutions added chip to credit, debit cards while they already had magnetic strip? Is there different kind of information stored on both and how is chip card with magnetic strip more secure than just magnetic strip card?
Asked
Active
Viewed 932 times
1 Answers
9
Is there different kind of information stored on both and
Yes.
how is chip card with magnetic strip more secure than just magnetic strip card?
A magnetic stripe is static data, and can be cloned by anyone who can read it. A chip cryptographically signs each transaction, meaning it works as a black box: you send the transaction details in, and get encoded data back. The card reader never sees the data on the chip that would enable you to clone it.
The chip should be the primary use, the magnetic strip is a backup for older legacy non-chip systems.
Rupert Morrish
- 7,576
- 4
- 27
- 41
quid
- 49,074
- 11
- 101
- 161