Come January 1 and a lot of debit or credit cards are going to stop working in India. This applies on both debit and credit card. Chances are that a majority of people will not be affected but some will obviously be. The reason is that banks are going to stop supporting the debit and credit cards that do not have the chip-based security in them. These cards, and most of them are going to be the cards that were likely issued 3 years ago, or even earlier, will no longer be usable in ATM machines or for payments at shops from January 1.
The cards that don’t have the chip-based security have been phased out and will no longer let you withdraw cash from ATM because of an order by the Reserve Bank of India. The order came 3 years ago. It noted that the simple magnetic stripe debit and credit cards would have to be replaced with the cards that have EMV — named after EuroPay, MasterCard and Visa — chip in them because they are far more safer and difficult to clone. This replacement was supposed to be finish by December 31, 2018. The idea is that with the chip-based cards, banks in India can offer better protection against card and bank fraud.
After the RBI order, banks started giving their customers chip-based cards. They also started a replacement drive for the existing magnetic stripe cards, but still chances are that many people are using old debit and credit.
So how do you know whether you have a chip-based credit or debit card, or if you are still using an old card? How do you know if your debit card is going to be fine after December 31 midnight or not?
It’s simple. Look at the following two cards.
One of these is going to stop working from January 1, 2019. This card is the blue one, which doesn’t have any golden chip in it. The Black one meanwhile has the golden chip in it on the left side of the card on the front.
On back both cards have the magnetic stripe. But in the black card, the chip on the front provides additional security. Also, you must have seen how nowadays when you go for some shopping your credit or debit is usually no longer swiped. Instead it is inserted in the card machine, and the machine reads data about the card from the embedded chip. If your card doesn’t no longer require swiping when you are paying a bill or shopping, that means you card has a the chip in it.
The design of the credit and debit cards is standard and uniform nowadays. This means, you can simply take a look at your debit or credit card and see if it has a golden SIM-card like chip embedded in it or not. If it has the chip, fine. If it doesn’t you should contact your bank and request a new card.