Chip+Readers+&+PIN+Pads

=Chip Readers & PIN Pads=

Orla O'Neill __**PIN Pads:**__

This is a device that allows you to put your credit/debit card in and enter your PIN to draw out money out of your account. They are usually in shops where the cash registar is responsilbe for taking the sale amount. Banks and retailers are replacing traditional magnetic stripe cards with smartcard technology, where credit/debit cards contain and embedded microchip and are authenticated automatically using a PIN.


 * How do they work?**

When a customer wants to pay for the items he/she is buying using a PIN Pad, their card is placed into the PIN Pad which then accesses the chip reader on the card. Once the card is accepted, the customer enters their 4 digit PIN and money is then drawn out of their account. PIN stands for private identity number.


 * Advantages:**

- It doesn't take long to purchase items at a till - It reduces theft at tills - PIN numbers help prevent fraud involving lost and stolen cards


 * Disadvantages:**

- There is a risk that someone would see your PIN number - Not all countries use Chip and PIN so it could be a problem for travellers - Decreases banks liability in case of credit card fraud

__**Chip Readers:**__

Credit and Debit cards now include 'Chip and PIN' which include electrical connections the card makes with the reader. A chip reader is the actual place where you put your credit/debit card in order to pay for something.On your credit/debit card there is a chip that looks like is a small rectangle of gold plates. The chip checks an embedded microchip in the card and purchaser uses their PIN pad to enter their secret code. The chips in the financial cards are made the same as those used for Mobile phones. (SIM) They are just programmed differently and embedded in a different shape. The smart card chip can be loaded with funds from your bank account, which can be spent in parking meters, shops and various other merchants. Something called ''Cryptographic Protocols' protect the exchange of money between the smart card and the accepting machine. Like some stand-alone point of sale devices, PIN Pads have a special hardware and software security features to make sure your PIN is erased if someone tries to tamper with the devices.

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