Although credit cards are very popular, and arguably still the most popular form of payment in the world, they also leave a lot to be desired when it comes to being secure payment methods. Fraud remains rampant in the credit card space, as there is no shortage of consumers calling in, day by day, claiming they didn’t make the charges they were billed for. As such, alternatives like bitcoin transactions have risen in prominence. But some banks have fought back, baking in EMV microchips into their credit cards for added security.
These EMV-chipped cards can be identified by the plastic-like chip on the left side of the card, typically above the card number. This chip will then be read by terminals, allowing for easy and secure payment, with the key word being secure – these EMV microchips are now the ones that house all of a customer’s sensitive information, which is actually a good thing. Hackers could easily steal this data from the magnetic strip, but not from EMV chips.
This also marks a significant step financial institutions are making to ward off the threat of bitcoin to conventional credit cards – after all, bitcoin transactions are not governed by banks or the government. But will merchants be willing to pay more in order to accommodate EMV-chipped cards? That’s one question many have been throwing around, despite the cards’ obvious benefits to consumers.
Interestingly, they wouldn’t have to deal with too many hassles when deciding to accept bitcoin payments – there will be no extra infrastructure needed, and payment processing fees would be lower. In addition to these benefits, bitcoin volatility also wouldn’t be that big of a possibility with such a setup.