Eli5: How does the chip in credit/debit cards provide an extra layer of security?

567 views

More and more card readers at POS terminals now support tap to pay means of making a payment. If we are not inserting the chip end of the card, how is it providing additional security?

Edit: wow, lots of great information, thank you folks for taking the time and explaining it like I’m 5.

In: 197

16 Answers

Anonymous 0 Comments

Tap to pay is a wireless way for the reader to connect to the chip in your card. The chip is a security measure because your banks servers have a little encrypted communication with the chip to verify that your card is real before completing the transaction. It is hypothetically possible for a thief to connect to your card wirelessly but the range is short and RFID blocking wallets are common

You are viewing 1 out of 16 answers, click here to view all answers.