CHIP Based Card Processing for Debit & Credit

By Dec.31, 2015, every business in Canada will be required to ONLY accept CHIP based debit & credit cards.  Banks are already starting to switch over cards that need to be replaced, and handing out these types of cards to new accounts holders.

Each card has a CHIP that is like a mini-computer with more data and tighter encryption than magnetic strips.  Each CHIP will have data that is unique to each financial institutions, which means much more difficulty for card fraud criminals to copy.  CHIP based technology is supposed to be more secure than magnetic strips.  They don’t require signatures- just enter your PIN, just like debit cards that you use now.  Cards now will have magnetic strips and CHIP until the transition is complete in 2015.

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