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https://yourmileagemayvary.net/2021/06/10/ive-never-had-to-do-this-when-paying-with-a-credit-card-in-the-us-before/

If there’s one place where the United States has lagged the rest of the world, it’s in credit card security. While most of the world has moved on to wireless technology using a tap-to-pay format, the US credit card terminals have only recently been updated to accept chip payments instead of a swipe.

The only reason that merchants have moved from a swipe to chip technology is because of banking regulations that have shifted the burden of fraudulent transactions to the merchant if they don’t offer up-to-date technology at the point of sale. That means the store and not the bank is on the hook if a payment is made with a phony card.

I’ve noticed that many gas stations have recently updated their pumps to accept chip cards. That’s because they were the last place required to do so, in October 2020. While this means I have to deal with an annoying commercial while pumping my gas, I also have to leave my card inserted to read the chip before removing it.

That is, until today when something happened that has never happened to me before in the U.S.
I was asked to enter my PIN for my credit card at the pump.

I used a Chip+PIN card at a gas station in the US. Welcome to the 2000s.

https://moneytips.com/chip-and-signature-chip-and-pin-emv-cards/

lmost every credit card issued in the U.S. is equipped with EMV® technology. If you need an EMV® card with Chip-and-PIN capability in particular, check out our list of card issuers that offer Chip-and-PIN cards.
What Is EMV® Technology?

EMV® is a security standard for storing account information on credit cards. It’s an alternative to the magnetic stripe (mag stripe) that has traditionally been used to store information on the backs of cards in the United States.

EMV® stands for “Europay, Mastercard, and Visa,” the three companies who began this initiative. It’s a more secure way to store information, providing better protection against some forms of credit card fraud than the older mag stripe, because it can’t be as easily “skimmed” by fake credit card readers.

There are two main types of EMV® credit card technology: Chip-and-Signature and Chip-and-PIN. The signature function requires a signature to verify transactions, just like credit cards traditionally have in the past. The PIN function requires a four-digit PIN, just like a debit card.

Today, every chip credit card you get in the U.S. will use Chip-and-Signature technology, in addition to having a magnetic stripe on the back. Some cards also include the Chip-and-PIN function, so they’re more compatible overseas and more secure in the U.S.

There’s much more to EMV® technology. But in most cases, especially if you’ll just be using your card in the U.S., you don’t need to worry about anything other than how to make purchases with your EMV® card.

If you’re planning to travel outside the U.S., in Canada or Europe, you should probably have a Chip-and-PIN credit card. Although many payment terminals will accept Chip-and-Signature, in some cases you might need a PIN card, like at unattended kiosks and train ticket machines. Be sure to get one that has no foreign transaction fees as well, so you don’t have to pay extra for every purchase.
All About EMV® Chip Cards
How do EMV® chip cards work?

When you make a purchase with a credit card, the terminal needs to verify that you’re the one who’s actually using the card.

This verification is usually done with a signature in the U.S., and sometimes with a PIN in other countries. The merchant may waive the verification requirement, especially for small purchases.

The chip and the terminal work together to create a unique, encrypted code, called a token or cryptogram. This token is unique to the specific transaction taking place, and will only be used that one time. This number is created from information in the chip combined with information in the terminal, but using instructions contained only in the chip.

This is a dynamic number, meaning it will be different for every transaction. It’s useless outside of that one transaction, and if anyone were able to copy it he or she wouldn’t be able to use it to make purchases with the card.

That’s in contrast to the static information contained in a mag stripe, which is always there on your card and able to be copied.

Next, this token needs to be decoded to verify that it came from your card’s chip. To do this, it will either be sent to the card issuer over the internet (known as online verification) or it will be verified within the terminal itself (known as offline verification).

Transactions with offline verification will be processed more quickly because they don’t require the online check.

After the token is verified, and the system determines that you have enough available credit on your card, the purchase will be approved.
What’s the difference between chip-and-signature and chip-and-pin?

Chip-and-Signature and Chip-and-PIN are two different Card Verification Modes (CVMs). CVMs are used when making purchases with credit cards, to verify that the real account holder is using the card and not a fraudster.

Simply put, signature cards will require a signature to verify the transaction, while PIN cards will require a PIN.

The PIN verification mode is more secure than the signature verification mode, of course. Anyone could forge a signature, and most cashiers never even check to see if your signature matches the one on your card. A PIN can’t be so easily duplicated.
Can a card be both chip-and-signature and chip-and-pin?

Yes, a credit card can have both Chip-and-Signature and Chip-and-PIN capability. Most cards issued in the U.S. are Chip-and-Signature, while some also have PIN functionality (and some cards still only have mag stripes). The credit card issuer determines the features of the card.

If a card has both signature and PIN capability, it will be set to prefer either one or the other. This is called “signature-preferred” or “signature-priority” in the first case, and “PIN-preferred” or “PIN-priority” in the second.

Most cards that have both functions are signature-priority. But a few are PIN-priority, like the Diners Club cards, some cards from credit unions like UNFCU and First Tech Federal Credit Union, and some store cards like the Target REDCard. In some cases you can set the priority yourself.

People generally prefer PIN-priority cards when traveling outside the U.S. because that’s the norm for most merchants. Some merchants in other countries are less familiar with the signature verification method, and transactions could end up taking much longer.

You can still typically get by in other countries with signature-priority cards, because most point-of-sale terminals can process either signature or PIN verification modes. But in some cases you might have a hard time using unattended self-checkout terminals and kiosks, which might not accept signatures.

When you make a purchase with your chip card by inserting or dipping it into the terminal, it will tell you the verification method required. You can then just follow the instructions it provides.

https://www.bankrate.com/finance/credit-cards/chip-and-pin-credit-cards/

Chip and PIN cards were developed as a way to reduce point-of-sale credit card number theft and skimming cybercrimes. And, as of Oct. 2015, all U.S. merchants were mandated to accept EMV cards or face potential liability for any credit card fraud originating at their establishment.

But, how do chip and pin credit cards work exactly? Instead of using the magnetic stripe on the side you once used to make a purchase, chip and PIN credit cards have a small metallic chip on the front that holds your payment data. This metallic chip is designed to reduce fraud, and it does so by providing a unique code for each purchase you make. Because the security code is unique for every purchase, it’s significantly more difficult for a thief to use your card for the purpose of fraud.

A credit card PIN—also known as your personal identification number—is a four-digit code you can use to verify you are the person making a purchase with your chip and PIN credit card. You can pick your own PIN when you sign up for a chip and pin credit card, and you can also change your PIN at any time.

With a unique PIN that nobody but you knows, your transactions should be even less susceptible to fraud. After all, it’s fairly easy to forge a signature and walk away with merchandise at a payment terminal, yet hackers and thieves will have a difficult time guessing a four-digit code. Your chip credit card might not automatically come with a pin.

Most credit cards with chip technology issued in the U.S. are considered “chip and signature” cards. This type of credit card comes with the added fraud protection of chip technology, yet you’ll be asked to provide a signature instead of a PIN when you use your card for purchases.

Some credit card issuers offer PIN capacity as well, meaning you can add a PIN to your card that doesn’t already have one. But if you want this added layer of protection, it’s up to you to call your card issuer to inquire.

Chip and PIN credit cards are significantly safer to use than their outdated magnetic stripe counterparts. This is due to the unique, encrypted code that is generated each time you initiate a transaction. This code allows your actual credit card number to remain concealed and makes any data derived from thieves during a transaction absolutely useless.