Know why old debit-credit cards being replaced?
Friday - December 20, 2019 4:15 pm ,
Category : WTN SPECIAL
After 31 December, debit-credit cards with magnetic stripes to be blocked.
Quickly change your old debit-credit cards to protect bank account
DEC 20 (WTN) - You will have an account in one of the banks and if you have an account in the bank, then you will also have a debit or credit card of the bank. But if you have an old debit or credit card, then for your information, let us tell that if you have not replaced your old debit or credit card with a magnetic stripe by 31 December 2019, your card will be blocked. In fact, according to RBI's order, RBI is going to close banks with magnetic stripe debit and credit cards.
For your information, let us know that at present there are two types of debit-credit cards in the country. The first type of card is magnetically striped, while the second type of card is a chip card. Keeping in mind the safety of card users, banks are now discontinuing magnetic striped cards. The last date for the replacement of old magnetic striped cards is 31 December 2019 as per the Reserve Bank of India order. RBI claims that this big decision has been taken to keep secure the information about the debit and credit card of the users.
For your information, let us know that in the year 2016, the Reserve Bank of India had ordered all the banks to replace the ordinary magnetic stripe cards of the customers with the chip cards. And this is the reason that banks are now issuing only chip-bound ATM cards and debit cards. According to RBI data, there are 44.2 million active credit cards and 958.2 million active debit cards across the country.
There is a significant difference between the old magnetic stripe cards and the new chip cards. In fact, the transaction from a magnetic data card requires a cardholder's signature variable or PIN. The details of your account are present on this card. With the help of this stripe, the machine connects to your bank interface at the time of card swipe and the process progresses. At the same time, all the information in the chip card is present in the chip. These also require a PIN and signature for the transaction, but the EMV chip card generates a unique transaction code to authenticate the user at the time of the transaction, which supports verification and it does not happen in a magnetic stripe card.
Regarding the old cards, RBI says that the cards with a magnetic stripe are now of old technology and that is why the bank has stopped making such cards. EMV chip cards have now been replaced in place of magnetic striped cards. The RBI says that over a long period of time, all old magnetic stripe cards have been replaced or being replaced by new ones.
For your information, let us know that almost all banks including State Bank of India are going to block magnetic stripe debit and credit cards after the due date. However, the card will be blocked only when its expiry date is forthcoming. At the same time, according to the RBI order, the banks have also issued a notification to their customers to replace the old magnetic stripe card with the chip card. For information, let us know that banks are not taking any separate charge for chip cards and being replaced free of cost in exchange for old cards.
Actually, cards with old magnetic stripes are not safe. According to a report tabled in Parliament, in the last three years in India, an amount of Rs 134 crore has been defrauded in 3,409 cases involving credit cards, debit cards, and internet banking. For your information, let us know that in recent times, attempts have been made to cheat bank customers through phishing, vishing and card skimming. According to experts, with the help of old magnetic striped cards, this kind of fraud can be done very easily.
Fraudsters place a skimmer device inside the card swipe slot in ATMs or terminals to read the customer's data stored in the magnet strip, which allows the cardholder to trace all the details of the fraud. After doing so, the fraudsters use your card to clone a new card with the same details after getting the information. Not only this, those people pass the customer information to the hackers and through this detail, the hackers can do online shopping as well as money transfer. But debiting-credit cards with EMV chip cards may not cause such skimming, as EMV chip cards do not reveal the card's data at the terminal at the time of swiping and instead generate a cryptogram.
DEC 20 (WTN) - You will have an account in one of the banks and if you have an account in the bank, then you will also have a debit or credit card of the bank. But if you have an old debit or credit card, then for your information, let us tell that if you have not replaced your old debit or credit card with a magnetic stripe by 31 December 2019, your card will be blocked. In fact, according to RBI's order, RBI is going to close banks with magnetic stripe debit and credit cards.
For your information, let us know that at present there are two types of debit-credit cards in the country. The first type of card is magnetically striped, while the second type of card is a chip card. Keeping in mind the safety of card users, banks are now discontinuing magnetic striped cards. The last date for the replacement of old magnetic striped cards is 31 December 2019 as per the Reserve Bank of India order. RBI claims that this big decision has been taken to keep secure the information about the debit and credit card of the users.
For your information, let us know that in the year 2016, the Reserve Bank of India had ordered all the banks to replace the ordinary magnetic stripe cards of the customers with the chip cards. And this is the reason that banks are now issuing only chip-bound ATM cards and debit cards. According to RBI data, there are 44.2 million active credit cards and 958.2 million active debit cards across the country.
There is a significant difference between the old magnetic stripe cards and the new chip cards. In fact, the transaction from a magnetic data card requires a cardholder's signature variable or PIN. The details of your account are present on this card. With the help of this stripe, the machine connects to your bank interface at the time of card swipe and the process progresses. At the same time, all the information in the chip card is present in the chip. These also require a PIN and signature for the transaction, but the EMV chip card generates a unique transaction code to authenticate the user at the time of the transaction, which supports verification and it does not happen in a magnetic stripe card.
Regarding the old cards, RBI says that the cards with a magnetic stripe are now of old technology and that is why the bank has stopped making such cards. EMV chip cards have now been replaced in place of magnetic striped cards. The RBI says that over a long period of time, all old magnetic stripe cards have been replaced or being replaced by new ones.
For your information, let us know that almost all banks including State Bank of India are going to block magnetic stripe debit and credit cards after the due date. However, the card will be blocked only when its expiry date is forthcoming. At the same time, according to the RBI order, the banks have also issued a notification to their customers to replace the old magnetic stripe card with the chip card. For information, let us know that banks are not taking any separate charge for chip cards and being replaced free of cost in exchange for old cards.
Actually, cards with old magnetic stripes are not safe. According to a report tabled in Parliament, in the last three years in India, an amount of Rs 134 crore has been defrauded in 3,409 cases involving credit cards, debit cards, and internet banking. For your information, let us know that in recent times, attempts have been made to cheat bank customers through phishing, vishing and card skimming. According to experts, with the help of old magnetic striped cards, this kind of fraud can be done very easily.
Fraudsters place a skimmer device inside the card swipe slot in ATMs or terminals to read the customer's data stored in the magnet strip, which allows the cardholder to trace all the details of the fraud. After doing so, the fraudsters use your card to clone a new card with the same details after getting the information. Not only this, those people pass the customer information to the hackers and through this detail, the hackers can do online shopping as well as money transfer. But debiting-credit cards with EMV chip cards may not cause such skimming, as EMV chip cards do not reveal the card's data at the terminal at the time of swiping and instead generate a cryptogram.
