How Do Chips Make Credit Cards More Secure?

If you live in the United States, you might have recently gotten a credit card with a microchip on it. But what does this chip do that makes it any different than the magnetic strip on the back of the card? ---------- We're conducting a survey of our viewers! If you have time, please give us feedback: https://www.surveymonkey.com/r/SciShowSurvey2017 Hosted by: Stefan Chin ---------- Support SciShow by becoming a patron on Patreon: https://www.patreon.com/scishow ---------- Dooblydoo thanks go to the following Patreon supporters: Kelly Landrum Jones, Sam Lutfi, Kevin Knupp, Nicholas Smith, Inerri, D.A. Noe, alexander wadsworth, سلطان الخليفي, Piya Shedden, KatieMarie Magnone, Scott Satovsky Jr, Bella Nash, Charles Southerland, Bader AlGhamdi, James Harshaw, Patrick Merrithew, Patrick D. Ashmore, Candy, Tim Curwick, charles george, Saul, Mark Terrio-Cameron, Viraansh Bhanushali, Kevin Bealer, Philippe von Bergen, Chris Peters, Justin Lentz ---------- Looking for SciShow elsewhere on the internet? Facebook: http://www.facebook.com/scishow Twitter: http://www.twitter.com/scishow Tumblr: http://scishow.tumblr.com Instagram: http://instagram.com/thescishow ---------- Sources: http://www.zdnet.com/article/the-pin-debate-retailers-banks-divided-on-post-emv-card-security/ https://www.nbcnews.com/business/consumer/one-year-are-chip-cards-effective-or-just-very-annoying-n663851 http://www.omaha.com/money/the-sound-is-annoying-but-chip-reader-s-alert-helps/article_a7ebbf88-3caf-50cd-a189-58f7fd386fe1.html https://beta.theglobeandmail.com/report-on-business/international-business/shift-to-chip-credit-cards-brings-us-in-line-with-canada-and-europe/article26590985/ https://www.theguardian.com/commentisfree/2014/jan/27/target-credit-card-breach-chip-pin-technology-europe http://blog.credit.com/2014/09/what-your-credit-card-number-means-94136/ http://www.investopedia.com/terms/m/magnetic-stripe-card.asp http://blog.opensecurityresearch.com/2012/02/deconstructing-credit-cards-data.html https://motherboard.vice.com/en_us/article/mgbm7p/why-chip-credit-cards-are-more-secure-than-magnetic-stripes https://www.creditcards.com/credit-card-news/emv-faq-chip-cards-answers-1264.php https://quickbooks.intuit.com/r/emv-migration/how-do-emv-transactions-differ-from-magnetic-stripe-transactions/ https://security.stackexchange.com/questions/49234/why-are-chips-safer-than-magnetic-stripes http://www.bankrate.com/finance/credit-cards/will-tokenization-protect-against-card-fraud.aspx https://www.computerworld.com/article/2960791/financial-it/faq-what-you-need-to-know-about-chip-embedded-credit-cards.html http://mashable.com/2015/10/01/emv-chip-credit-card-migration/ http://mashable.com/2015/11/11/consumers-credit-card-tokenization/ http://www.smartcardalliance.org/smart-cards-faq/ https://www.cryptomathic.com/hubfs/docs/cryptomathic_white_paper-emv_key_management.pdf [PDF] http://www.secuilibrium.com/news/emv-how-does-the-crypto-work-in-chip-based-payment-cards https://crypto.stanford.edu/~dabo/courses/cs255_winter14/lectures/EMV.pdf [PDF]