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Introducing Chip Cards:  Enhanced Security for your Debit Cards
Islanders Bank will soon offer debit cards with chip technology. The embedded computer chip provides more security and wider international acceptance. A microchip embedded in the card adds a new layer of protection against fraud for purchases made at the point of sale terminals. Information programmed into the chip is personalized for your account and each transaction generates a unique code, adding an extra safeguard against unauthorized use and counterfeiting. These cards are already in wide use around the world and are now becoming the standard in the U.S. card technology. Continue reading below for information about your chip Islanders Bank debit card and more.

What are chip cards?
A chip card – also called a smart card or an EMV card – is a debit or credit card that contains a microprocessor that enhances the security of cards during point-of-sale transactions.

When will I get my chipped Islanders Bank debit card?
Your card will be replaced with a new chip card as your current card expires. Once your new card arrives, be sure to activate it for use and then destroy your old card. Be sure to update any automatic payments with your number, expiration date and CVV. There is no need to request a new card. You’ll automatically receive your new chip card in the mail before your card’s expiration date. There is no extra charge for the new chip card. If you are planning to travel internationally or have an immediate need for a chip card, please contact us at 1-800-843-5441 or visit your local branch for assistance.

Follow these steps to use your card at a chip-enabled terminal:
Start the payment process by ‘swiping’ your card, just as you do today. If the terminal is chip-enabled, you will be instructed to insert your card.

  1. Insert your card, face up and chip end into the chip-enabled terminal.
  2. Leave the card in the terminal during the entire transaction.
  3. Follow the instructions on the screen and either sign your name or enter your PIN as needed. Be sure to remove your card and take your receipt when the transaction is complete.

Can I still use my current card?
You can use your current card until you get your chip card. At that time, activate your new chip card and start using it. Be sure to destroy your old card by cutting it up or shredding it. Once the chip card is activated the old card will not work regardless of its expiration date.

Do I need to sign the back of the card?
Yes. You still need to sign the back of your card

Can I use my chip card anywhere?
Yes. Your chip card can be used virtually anywhere Visa® is accepted in the U.S. and around the world. If a merchant has a chip-enabled card terminal, you will insert your card during the transaction. In the U.S., you will still be able to ‘swipe’ your card to make your payment if a merchant has a regular terminal. You will need a PIN to be able to make a transaction at an ATM.

What if a merchant isn’t using a chip-enabled terminal yet?
Your payment will process as it normally does from your initial “swipe.” Chip cards will continue to have a magnetic stripe on the back.

How do I use my new chipped debit card for online and phone purchases?
Provide your card information as you have done in the past. Chip cards will not change the way payments are made online or by telephone. Since a chip issues its unique code only when inserted into a chip-enabled reader, the new cards don’t yet provide additional fraud protection for online and telephone transactions.

How do I use my chipped debit card at an ATM?
Insert your card, leave it in the ATM, and follow the prompts on the screen. Depending on the type of ATM, you may be prompted to re-insert your card. Leave the card in the ATM until the transaction is complete and the card is released, and then remove your card. A PIN is needed for ATM transactions.

When I used my chip card at an ATM, I was asked to select between “Debit” and “Visa Debit”. Which one should I choose?
It is fine to select either one – your transaction will work either way.

How can I get “cash back” when using my debit card?
Some merchants that allowed cash back (e.g. supermarkets) had to disable this feature when they started accepting EMV chip cards. We expect that they will allow this feature within the next several months.  Be sure to let the merchant know that you would like the option to get cash back.

How can I enter a tip (e.g. at a restaurant or hair salon)?
Some merchants that used to allow you to add the tip to the receipt after the transaction, may now ask you to specify the tip before the transaction. We expect that this will change over the next several months to restore the previous option of adding a tip after the transaction.

What are the security benefits of my new chipped debit card?
All debit cards that we issue come with “Zero Liability Protection” so you are not held liable for unauthorized transactions if a card is lost, stolen, or fraudulently used at a merchant or online. It is important that you promptly report a lost or stolen card or any suspicious transactions. This additional limit on liability does not apply to ATM transactions outside of the U.S., to ATM transactions not sent over Visa® or Plus® networks, or to transactions using your PIN, which are not processed by Visa®. See the applicable agreement for your account on liability and reporting requirements for unauthorized transactions.

When will chip card technology be fully implemented in the United States?
Even though chip cards are being issued in the U.S. and some merchants have already installed chip-enabled card terminals for payment, the entire conversion process is expected to take a few years to complete. That’s why chip cards will continue to have a magnetic stripe on the back. That way, if a merchant’s terminal or an ATM is not yet chip-enabled, your transaction can still be processed using the magnetic stripe as it is today.

What is the difference between chip and signature and chip and PIN?
You may be asked to provide your signature or enter your PIN to complete a transaction when you use your card. You will need to use your PIN at ATMs and it may be required at some unattended terminals such as fuel pumps and payment kiosks. Please note that some merchants are now requiring you to use your PIN for debit card transactions (previously you could select “credit” to sign instead). This is why it is important to select and remember your PIN. You are always protected against fraud no matter if you sign or enter your PIN.

Will chip cards prevent data breaches?
While chip cards won’t prevent the types of large-scale data breaches that have hit some merchants, they do make it extremely difficult to produce counterfeit cards from that stolen data.

Does a chip card contain more information about me that could be stolen?
No, a chip card does not contain any information about you that isn’t in your magnetic stripe cards – just your name, account number, and expiration date.

Can someone steal the information in my chip card remotely using radio waves or a “contactless reader?”
No, your chip card must be inserted into a POS terminal or ATM in order to read the chip. The information that can be read is limited and not sufficient to make a fraudulent card.

Contact us for more information
If you have additional questions about chip cards or if you are interested in opening an account, call us at 1-800-843-5441 or stop by your local branch.
EMV™ is a trademark owned by EMVCO LLC.
Visa® is a trademark owned by Visa Inc.

CLICK HERE to Report a Lost or Stolen Debit Card