What is a "chip"? CBBC Bank Business Debit Cards are being issued containing a small microchip just above the printed account number on your card. Chip cards allow for an extra layer of security for face to face purchase transactions.
How they work:
When used at an enabled terminal, the microchip in your debit card creates a one-time use code that the merchant sends to the card company to process your transaction. The card company is able to match this code to your card information and pay the merchant.
How is this safer:
With traditional debit cards, information stored in the magnetic strip and transmitted to card companies from merchants includes your name, full card number, card expiration date, and security code (the numbers found on the back on the card). If a card was compromised, either by swiping through a skimming device or a data breach, all of this information could be used by criminals for unauthorized purchases from your bank account. By using the new chips to complete face to face transactions, none of this information is sent through payment systems thus lessening the likelihood of a card compromise.
How to make a purchase:
When you are ready to make a purchase, you will insert the card into the merchants chip-enabled terminal at the bottom of the key pad. The terminal will read the microchip to access a one time use code for your purchase. While it is doing this you will be asked for your PIN number. The card will need to remain in the terminal until the transaction is finished processing. Once it is done, the terminal will alert you and the screen will tell you that you may now remove your card.
What about online transactions:
Microchips can only work to protect your account information when you are making a purchase face to face and the merchant has a chip-enabled terminal. Transactions made with online merchants still require you to enter your card number and other information to complete the transaction. Please refer to our useful tips tab above to learn more about protecting your card information while making an online purchase.