Many banks in Vietnam have recently officially sent notices to users about officially stopping support and not being accepted at transaction points nationwide from December 31, 2021, based on the roadmap. set out in Circular 41/TT-NHNN of the State Bank of Vietnam issued on December 28, 2018.
To increase security for customers, banks since March 31, 2021 have stopped issuing cards from old ATMs and completely replaced them with new chip cards. At the same time, banks are also supporting customers to convert magnetic cards to domestic chip cards to ensure the correct implementation of the roadmap.
However, not all users realize the difference between magnetic ATM cards and chip ATM cards. To facilitate the process of converting magnetic cards to chip cards and also to avoid unnecessary confusion, here is a way to distinguish the shape and function of these two cards.
How is the design, shape, and security of magnetic cards different from chip cards?
Basically, just by looking at it with the naked eye, we can easily recognize the difference between magnetic cards and chip cards.
The most obvious difference between magnetic cards and chip cards
With magnetic cards, the back of the card contains a black magnetic stripe. This magnetic stripe contains the cardholder’s personal information, which is saved as text. When a customer inserts a card into an ATM or swipes a card on a POS machine, personal information stored in the black magnetic stripe on the back will be read by the readers in the machine. However, this information has a low level of security. With just a common magnetic card swiping device on the market, crooks can easily steal card information. This is the main reason why banks want to stop using this card.
With chip cards, this is a type of card with an electronic chip located on the front of the card. This chip is capable of storing cardholder information, which is encoded in binary. To increase the security of the card, the chip card will generate a unique and never-repeated password each time the customer makes a transaction. Only the card issuing bank can verify this password and authorize the transaction. In case the customer’s card is stolen from a certain store, the fake card will never work because the stolen transaction code will not be reused, the card will be rejected.
Chip cards integrate many security technologies inside
Another advantage of a chip card is that it can integrate payment features with applications in different fields, helping the issuing bank to increase the convenience for customers on the same physical card. physical.
Besides, ATM cards with chips of banks also come with a contactless payment feature (Contactless) with identification by the wave column icon on the front of the card. Thanks to this feature, customers can no longer need to carry a chip in their hand, but can leave the card in their wallet. To pay for a transaction, you just need to touch the card to the card machine, no need to bring the card staff or put the chip into the machine. This helps to limit the possibility of losing the card, and at the same time keeps the information secure to the maximum extent, avoiding the fraudsters’ access to information in this way.
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