Chip Technology - Our commitment to safeguarding your money
As credit and debit card fraud becomes more common, financial institutions and governments have been co-operating to introduce chip technology that greatly increases the security of your credit and debit cards.
A chip card, or “smart card”, has a microcomputer chip embedded in the plastic. It is like having a personal computer right on your card that is capable of performing a variety of functions, including card authentication, PIN verification, and information storage.
The chip securely stores and processes data which increases protection against loss, theft and counterfeit card fraud. The chip is encrypted and provides enhanced security using multi-layered defenses to help guard against fraud. When used at ATMs and stores or restaurants with chip-enabled terminals, the system validates the chip and the Personal Identification Number (PIN), ensuring a more secure transaction. These enhanced security features make chip cards virtually impossible to copy.
Starting in October 2010 and continuing until spring 2011, newly-designed Outlook Financial debit cards, with revolutionary chip technology, will be rolled out to members. At this time, only cards that have been used at an ATM or for retail purchases within the past twelve months will be converted to chip cards.
Accessing your accounts and completing transactions online and through telephone banking will remain the same. When you get your new card, simply enter your new card number and your existing Personal Access Code (PAC) to log into the system.
Over the next few years, all major financial institutions and retailers will be converting to chip. The complete migration to chip technology will take several years, given the vast number of ATMs, retail terminals and debit cards across Canada that must be converted.
It will take time for all stores and restaurants to be set up with chip-enabled terminals and there are some countries that have not yet transitioned to chip technology. To ensure you will be able to perform transactions everywhere, all cards will still have a magnetic stripe in addition to the chip.
Note for Travelers
Chip technology is very reliable but, as with any type of technology, things can happen. If you are planning to be away for an extended period of time, as always, we strongly encourage you to have other methods of payment with you.