How to Use a Chip Card: Tapping and Inserting

A chip card, also known as an EMV card, represents a significant advancement in payment security. EMV stands for Europay, Mastercard, and Visa, the companies that developed this global standard. Unlike older magnetic stripe cards that store static data, chip cards embed a microchip that generates a unique, single-use code for each transaction. This dynamic data exchange makes it more difficult for fraudsters to counterfeit cards or use stolen card information for unauthorized purchases. The chip’s presence enhances protection for “card present” transactions where the physical card is used at a terminal.

Using a Chip Card with Insertion

When making a purchase, inserting your chip card into a payment terminal is a common method. Locate the slot on the terminal. The card should be inserted chip-first, with the metallic chip facing upwards, into this designated slot. It is important that the card remains fully inserted in the terminal throughout the entire transaction.

During the transaction, the terminal screen will display messages such as “Do Not Remove Card” or indicate that the transaction is processing. Depending on the card issuer and the type of transaction, you may be prompted to enter a Personal Identification Number (PIN) or provide a signature. Once the transaction is complete and approved, the terminal will usually provide an audible signal, such as a beep, and display a clear message indicating when it is safe to remove your card. Promptly removing your card upon this instruction helps ensure the transaction finalizes correctly.

Using a Chip Card with Contactless Payment

Many modern chip cards also offer contactless payment functionality. To use contactless payment, look for the contactless symbol on the payment terminal, which typically resembles a sideways Wi-Fi symbol with four curved lines. This method provides a quick and convenient way to complete transactions without physically inserting the card.

Once you have confirmed the terminal’s contactless capability, hold your chip card within one to two inches of the contactless symbol. There is no need to insert the card into a slot; simply holding it flat near the reader is sufficient. The transaction is usually completed within seconds, often confirmed by a beep, a green light, or a checkmark on the terminal screen. While many contactless transactions do not require a PIN or signature for lower value purchases, some may still prompt for one, especially for debit card transactions or those exceeding a certain limit.

Handling Common Usage Scenarios

Occasionally, a chip reader may not function as expected, or a terminal might not be equipped to read chips. If the chip reader fails to work, the terminal may prompt you to swipe your card using the magnetic stripe on the back. This “fallback” option allows the transaction to proceed, though it offers less security than a chip transaction. Should a terminal only have a magnetic stripe reader, simply swipe your card as you would with a traditional card.

The method of verifying a chip transaction can vary between a PIN and a signature. Many debit cards and some credit cards require a PIN for authentication, which is generally considered a more secure verification method as it relies on a secret code known only to the cardholder. Other cards, particularly many credit cards in the U.S., may require a signature. The specific requirement depends on the card issuer’s policy and the terminal’s configuration.

If you encounter a “Card Read Error,” it often indicates an issue with the card’s chip or how it was inserted. Ensure the card was inserted correctly. If the error persists, try re-inserting the card. Cleaning the chip with a soft cloth can resolve issues caused by dirt or grime. If the problem continues across multiple terminals, or if the card frequently fails, it may indicate a damaged chip, and you should contact your card issuer for a replacement.