Credit cards are quick and convenient, but they’re also risky. Each time you make a payment with a credit card, there’s always a chance that a bad actor could get a hold of your information. As a cybersecurity company in Miami, we have seen this happen time and time again, and identity theft victims are left wondering where they went wrong.
Understanding the safest way to use your credit card can help prevent identity theft while still enjoying their conveniences. The first step is to understand the difference between three common types of card processing:
- Swipe
- Chip
- Tap
We’re going to outline the key differences between the three to help you understand which is most secure.
Swipe vs Chip vs Tap: What’s the Difference?
Let’s take a closer look at what each type is and how they differ from each other.
Swipe
Swipe cards have magnetic strip technology. They’re convenient – just swipe your card and sign a receipt or a touchscreen.
Credit card companies and banks started implementing magnetic strip technology into their cards in the late 60s, so it has been around for decades.
For this reason, most merchants still accept swipe cards, but this may not always be the case. While convenient and accepted in many establishments, swipe cards do have drawbacks and aren’t the most secure option.
Bad actors have had decades to figure out how to use swipe cards for fraudulent purposes. They’ve mastered the art of exploiting these types of credit cards. One of the most common types of fraud involving swipe cards is card skimmers.
Chip
Chip cards are what most people are familiar with today. Just as the name suggests, these credit cards have a small EMV chip embedded on the front. Instead of swiping your card, you insert it into the machine, wait for the reader to read your card, and remove it when prompted.
Unlike swipe cards, chip cards don’t require a signature.
Why? Because EMV payment technology helps make transactions more secure.
Tap
Tap cards are often called contactless cards, and they’ve become increasingly popular in recent years.
Contactless cards have internal chips that generate unique, one-time codes each time a purchase is made. The process is quick and convenient, and it’s also very secure.
What’s the Safest Way to Use Your Credit Card?
Chip and tap cards are safer than swipe cards. Many experts suggest that tap or contactless payments are the safest way to use credit cards because when you tap-to-pay, your card will generate a one-time, encrypted code that contains your payment information.
Even if a criminal intercepts that code, they would need the right tools and knowledge to decrypt it.
Overall, tap cards tend to be the more secure option, but with any credit card, there’s no surefire way to protect against identity theft. However, if you use a safer payment method – like chip or tap cards – and use the best practices for protecting your information, you can minimize your risk.
Need help with your cybersecurity in Miami? Contact us today!