If your debit or credit card is no longer working in ATM, at shops, this could be the problem

If your debit or credit card is no longer working in ATM, at shops, this could be the problem

If you are an old debit or credit card user, chances are you may face difficulty in doing transactions at ATMs, shops or any point-of-sale machines this year. This is because your card lacks a feature mandated by the Reserve Bank of India.

The Reserve Bank of India has asked all the banks operating in India to dump the old magnetic stripe cards as they are easy to duplicate and can be used in bank frauds. Instead the banks have been asked to use cards with a security chip inside them called EMV or Europay, Mastercard, Visa chip cards. EMV cards are more secure and encrypted than the magstripe cards.

The RBI has mandated the use of EMV chip cards from January 1, 2019 which is why you may be experiencing difficulty in using your old card in ATMs, shops, or malls currently. Your card has to be upgraded to avoid this inconvenience.

However, only the ATMs or point of sale machines will be affected by this move. You can still perform functionalities like paying bills, funds transfer and more using online banking or through the official app of your bank.

Here are all the other related details that you should know about the transition from magnetic stripe cards to EMV chip cards :

— The Reserve Bank of India had issued a directive in 2015 asking banks to replace old magnetic stripe cards with EMV chip cards latest by December 31, 2018. The central bank gave the banks almost three years to make this transition.

— The directive applies to both domestic as well as the international banks debit and credit cards.

— The EMV chip cards came in use in January 2016.

— Banks started sending out messages to users in the last few months informing them to upgrade their cards on or before December 31, 2018.

— RBI has decided to dump old magstripe cards because they are less secure than EMV chip cards. The magnetic stripe card stores user data in a static form in the black strip running at the back of it. According to RBI, as on September 30, 2018, there are 990 million debit cards and 42 million credit cards in the country compared to the 847 million debit cards and 36 million credit cards at the start of the year.

— The EMV or Europay, Mastercard, Visa chip cards support dynamic data authentication which makes them difficult to copy. They come with better data encryption and storage technology.

— The cost of replacement of old debit and credit cards with the new EMV chip-based cards will be borne by the banks.

— There are two ways to upgrade your old cards. You can either do it via net-banking or visit your bank’s main branch. However, banks may charge you some amount for the process now since the last date for the transition was December 31, 2018. Your new card should be delivered within seven working days.


Source:- indiatoday