How Does Chip and PIN Work?

Following Europe’s success with the Chip and PIN switch, Canadian Chip and PIN smart cards are replacing traditional magnetic stripe credit cards all across Canada for a more secure way to process transactions.

Chip and PIN smart cards:

• Increase security by embedding data in an advanced microchip instead of a magnetic stripe.
• Replace signature with PIN for a more secure verification process and reduced risk of fraud.
• Make transactions easier, faster and safer for Canadian merchants and consumers.

Using the Canadian Chip and PIN
Making the switch from magnetic strip credit cards to the Chip and PIN smart cards is simple. The only main difference that occurs during the transaction is how the card data is obtained. The Chip and PIN is “dipped” into the terminal rather than “swiped” and the customer is then prompted to enter their secure Personal Identification Number (PIN). Entering and accepting the PIN is not much different than a debit card PIN, and is faster and more secure than providing a signature for verification.

By 2015, Canadian merchants can no longer accept magnetic stripe cards at the point of purchase. Be sure to train your employees to know how to identify and accept the new Chip and PIN smart cards. At BluePay, we offer advanced Chip and PIN technology for our Canadian merchants.