Distinguish the difference between ATM magnetic card and chip card

Concept

ATM magnetic card is a type of bank card that has been familiar to everyone for many years. ATM magnetic has a black magnetic strip on the top of the card. This strip will contain the cardholder's information.

A chip-based ATM card is a card that has an electronic chip attached to the front of the card. This chip contains the cardholder's (encrypted) information.

Card security level

With magnetic cards, the cardholder's information in the black stripe is stored in text form; it is easily decrypted and stolen. The security level is low, and criminals can easily secretly install devices that record the user's PIN code input.

With a chip card, the cardholder's information is encoded in a computer's binary-style sequence of symbols. The chip card's encoding will enhance the information; the chip's encoding will be continuous.

Durability

Magnetic cards have low durability, and magnetic strips are easily scratched. Meanwhile, chip-based ATM cards have high durability, and the information on the chip can be recorded many times.

How to identify cardholders

Old magnetic ATM card, simple way to identify the cardholder, through magnetic strip. The cardholder's photo is printed on the card and the cardholder's signature is on the back.

In contrast, ATM cards with chips have more complex cardholder identification. Chips identify cardholders using a pin code.

App integration capabilities

The special feature of ATM cards with chips is the ability to integrate into applications. For example, small loans, savings books, student cards, etc. Old magnetic cards do not have this feature.

The difference between ATM magnetic card and chip card.

Cost savings

Magnetic cards can only store a certain amount of information and cannot be erased and rewritten. Therefore, it costs money to buy additional blank cards. On the contrary, information on chip cards can be erased and rewritten many times. Therefore, it saves the cost of buying blank cards.

Quantity

There is only one type of magnetic card, while there are three types of chip ATM cards. These include contact chip cards, contactless chip cards, and chip cards.

In addition to the above advantages, chip-based ATMs also have a strict security operating principle. When a chip card is used for payment, the chip will create a unique and non-repeating transaction code.

In the event that your card is stolen or counterfeited, the counterfeit card will never work. Because the stolen transaction code cannot be reused, the card will be declined.

Tue Lam (Synthesis)

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