On October 1, merchants were required to have special new credit and debit card payment terminals in place that are designed to accept special "chip" credit and debit cards.
The updated cards, which are known as EMV (Europay, MasterCard and Visa) have small chips that communicate unique data with each and every transaction. These new cards require a special type of payment terminal to process these transactions.
The technology is designed to prevent card theft from Internet thieves who seek to hack into terminals and steal credit and debit card information. A specially-designed chip that is embedded in the card can be read only once, thus reducing the opportunity for fraud from theft. That is, if a hacker tries to use stolen chip information from a specific point of sale, the stolen transaction number that is created for the fraudulent charge cannot be used a second time. Thus, the transaction will be declined.
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