New EMV Enabled Credit / Debit Card (More Security & Restrictions)

Even if you have EMV enabled CC, its going to work as it was working before. At least that’s what my bank says Even when 3D secure pin was enabled,  Some of the websites could charge you without asking for 3D secure Pin. The logic is same.  Even if you have EMV Credit Cards with PIN, it will work on any online transactions.

All of a sudden my HDFC bank decided me to send a new CC even though the expiry date is due late. When it arrived, I was surprised to see that there is a Micro SIM inserted in it.  Out of curiosity, I called in my bank. They said this is the new security feature which will make sure no body will be able to copy your CC into a blank CC and use it as they like.

Next, I went ahead and tried to check if any of the government website has more info. Luckily RBI has this information straight on the face.

It seems that RBI is getting tough with the use of Debit and Credit Card, specially on International level. Not only they want to restrict the amount of transaction that can be authorized on the card but also take them completely off for International usage.

EVM Enabled CC

Can you use the new EMV Enabled Credit & Debit Cards Online ?

There are some myths floating around that the new Credit Card cannot be used in online transaction i.e. Online Shopping website.  I called in my bank, and it turned out to be totally incorrect.

So here are some basic facts you should know:

  • The New Chip system or EMV Chip is to protect your transaction when used with a payment machine. This makes sure that nobody can copy the data on your CC and you are available when the transaction is being processed. Yes you need to be there to enter your PIN like when you had used your debit card.
  • EMV Chip enabled credit cards will work fine when it comes to online transactions. They are however protected by your verified by Visa Password or 3D secure pin i.e bank’s secure site for identification verification.

Since this EMV Chip machines are not available at all shops and hotels, my Credit Card has option for both EMV and Swipe. I guess the bank might have taken this hybrid method as the merchants get time to upgrade themselves. However, the bank instructed that if I get an option of using EMV, I better use that.

There is a list of rules set by RBI for Credit and Debit Cards. I am just helping you understand it a bit better.

RBI Says:

  1. All new debit and credit cards to be issued only for domestic usage unless international use is specifically sought by the customer. Such cards enabling international usage will have to be essentially EMV Chip and Pin enabled. (By June 30, 2013)
  2. Issuing banks should convert all existing MagStripe cards to EMV Chip card for all customers who have used their cards internationally at least once (for/through e- commerce/ATM/POS) (By June 30, 2013)
  3. All the active Magstripe international cards issued by banks should have threshold limit for international usage. The threshold should be determined by the banks based on the risk profile of the customer and accepted by the customer (By June 30, 2013). Till such time this process is completed an omnibus threshold limit (say, not exceeding USD 500) as determined by each bank may be put in place for all debit cards and all credit cards that have not been used for international transactions in the past.

My Understanding:

1) It depends on your bank if you can have International transactions enabled on your CC or not. It’s a good thing to restrict because for many International transactions might not be the requirement.

2) In case you have already used your CC Internationally, You will be getting the new EVM enabled CC soon. However, if you do not, ask your bank.

3) Again it depends on your bank, your bank account and your relationship with the bank.

Share your thoughts. Let me know what do you think about this. Did you face any issue with the new EVM enabled Credit Cards ?

About Ashish Mohta

An analyst who writes about undiscovered,unknown and untalked topics for people who want to to know more about India and Indians.