Chip Cards: How Do They Work?

RBFCU now offers credit and debit cards enabled with chip technology, providing an additional level of security for your transactions and account information. The chip card is designed to be used with a special chip terminal card reader at the point of sale (POS); however, because it still has the traditional magnetic strip, you can use it for transactions even if the merchant has not converted to a chip card reader.

Why do I need a chip card?

Chip card technology provides stronger protection and security against fraudsters, in particular against “skimming.” Skimming is a technique in which criminals copy the data from a card’s magnetic strip and use it to create a counterfeit card. When a retailer uses a chip-enabled terminal, the chip technology helps prevent theft of account information. In addition, most U.S. merchants have converted or are in the process of converting to new chip-enabled terminals.

How do I use the chip card?

Learn more about using your chip card with our instructional video:

FAQ FAQs

  • How do I use a chip card at chip-enabled terminals?

    To use a chip-enabled terminal, the cardholder will insert their card into the bottom of the terminal and follow the prompts on the screen. The terminal will read the information contained in the chip, making sure the card is valid and authenticating it more securely.

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