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Actually, the data on the magnetic stripe was in plaintext. The chip has a digitally signed copy of that data. This allows the bank to authenticate the card as
by uiri 9y ago
Actually, the data on the magnetic stripe was in plaintext. The chip has a digitally signed copy of that data. This allows the bank to authenticate the card as valid and eliminates attacks where a fake card is made with stolen data put onto the stripe.
This does nothing for online payments but very effectively curbs fraudulent card present transactions.
- digi_owl 9y agoIt goes beyond that, unless the US implementation is different to the one i am (somewhat) familiar with. The chip is an active participant in the authentication. it will receive digital signatures from the bank and the terminal, and if said signatures are found valid, release the payment info stored.
- thehardsphere 9y agoI do know the US implementation is different, but I do not know if it is different in regards to this highly relevant information.