Credit Union Data Linking–Migrating to Chip Cards for Security

Keeping data secure is always a top priority for Oak Tree. It`s one of the reasons we offer data integration with our forms packets. Data integration makes credit union business more efficient and safer for the members and institution. Yet the fight for data security is ongoing. New mandates and regulations have chip card processing vendors on their toes. Most industries are required to be in compliance by the end of the year or face fines. It is time for your credit union to look at migrating to chip cards for security if it has not already done so.

The move is an effort to protect client data. Chip cards work by linking customer data to a small EMV (Europay, MasterCard, and Visa) chip on the face of the card. It offers more security than traditional magnetic stripe cards. Here are three security feature highlights.

3 Reasons Chip Cards Are Safer Than Their Magnetic Stripe Counterparts

  • Fraud. Chip cards prevent people from making purchases by physically swiping a fraudulent credit card. It works. Many places have seen these types of purchases all but eliminated.
  • Cloning. Chip cards are extremely difficult to clone. Magnetic cards are much easier. The reason is, magnetic cards make use of static data. A $20 skimmer is all a thief needs to create a clone. Chip card data is dynamic. It always changes. In order for a data hack to occur, a thief would need to access the chip`s physical circuitry.
  • Better Encryption. Magnetic stripe cards broadcast data through the reader as-is. Chip cards encrypt the language as soon as it “dips” into the reader. The card communicates with the merchant through secure encryption the entire time.

This is why migrating to chip cards is one of the best long-term moves for member security. Chances are, chip cards will undergo a few rounds of revision over the next few years to streamline security and data linking. Our forms will remain constant, though. Always compliant and accessible when you need them, they are the perfect companion to ensure the entire chip card application process is secure.

When it comes to Credit Union Consumer Lending Documents and Data Linking Services, Oak Tree is here for you.