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Why did financial institutions added chip to credit, debit cards while they already had magnetic strip? Is there different kind of information stored on both and how is chip card with magnetic strip more secure than just magnetic strip card?

marked as duplicate by Joe, JoeTaxpayer Jul 10 '18 at 22:44

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  • @BobBaerker You can't have an actual cross-site duplicate, but it certainly is a good link! – Joe Jul 10 '18 at 21:52
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Is there different kind of information stored on both and

Yes.

how is chip card with magnetic strip more secure than just magnetic strip card?

A magnetic stripe is static data, and can be cloned by anyone who can read it. A chip cryptographically signs each transaction, meaning it works as a black box: you send the transaction details in, and get encoded data back. The card reader never sees the data on the chip that would enable you to clone it.

The chip should be the primary use, the magnetic strip is a backup for older legacy non-chip systems.

  • This massively understates the risks of chip cards, though it's certainly the theory behind why they're adopted. – Joe Jul 10 '18 at 21:54
  • @Joe, I don't agree with most of the edit for that reason, I didn't think it's different/secure enough to elaborate. – quid Jul 10 '18 at 22:12
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    Should the edit be rolled back then? – Joe Jul 10 '18 at 22:26

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