Chip Technology is Changing the Way we Buy Things
If you don’t have one already you
probably have seen how they work. Chip technology is a tiny change to the way
we pay for things with a credit card which greatly increases these cards’
security. Normally when we swipe a credit card software in a POS (Point of
Sale) system reads your credit card number from the magnetic stripe on the back
of your card. This works fine but the magnetic stripe leaves room for credit
card theft. When a card is swiped, the information from the card is read by the
software in the terminal and then encrypted so as to prevent theft. The problem
with this is that the information on the card itself is unsecured. If someone
reads the stripe on the card, they have access to your credit card information.
Enter chip cards. Instead of a magnetic stripe being swiped, chip cards have a
tiny chip on the front of the card which is inserted into the payment terminal.
This chip acts as a tiny computer and can store data as well as process it.
Since the card has no power source, it doesn’t do anything until it is inserted
into the terminal. Once that happens, the chip encrypts credit card information
before the software in the terminal receives it. Because the information is
delivered to the terminal already encrypted, the software must be programed to
decode the information before it processes it. This makes it much harder for
this information to be stolen because the information is already encrypted when
it is stored on the card.
sources:
https://www.nerdwallet.com/blog/credit-cards/emv-chip-credit-cards-required-law/
http://science.howstuffworks.com/science-vs-myth/everyday-myths/quantum-cryptology.htm
http://money.howstuffworks.com/personal-finance/debt-management/chip-and-pin-credit-cards2.htm


