Eli5: How is a debit chip or tap to pay anymore secure than a mag strip with the same data on it?
In: 118
I work for a bank, used to do disputed transactions, many of them involving cards.
The chip is *not* more secure than the mag strip. That’s not why banks forced all the cards to use them.
The chip just sends a report that it’s been used for every transaction it’s involved in. So the bank knows, if the charge on your card used the chip, your card was *physically there* to make the purchase, and that it wasn’t made online or over the phone or some other way.
This means that if someone calls the bank, says they had their card in their possession, but the last 5 chip-based charges on their account are fraudulent, the bank will deny that dispute case and say “your chip was used and you said you had your card, therefore you made these charges.”
I can confirm this pisses off *a lot* of people.
EDIT: Downvoting the person telling you that your cards aren’t safe is some pretty naive shit.
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