How Chip Cards Work
- If you've spent any time overseas in the past decade or two, you would have noticed that all credit cards have little chips embedded into them. Also, instead of swiping credit cards horizontally on the side of a card reader when checking out, you place them into a slot on the front. This is EMV Technology (also known as smart cards or chip cards). Named after Europay, MasterCard and Visa, it is a global payment technology standard that uses a small microprocessor embedded in a credit card to transfer information from customer to business.