I'm surprised the stripe is still added to cards these days. The chip broke on my mums card around 10 years ago and although the card readers had strip readers, they would often refuse to use it. Seem to remember some requiring a few failed chip uses before allowing magnetic strip.
Depends in what part of the world you’re in. In Europe I wouldn’t really expect anyone to accept magstripe on card with a chip, but in the US it’s more common.
Additionally terminals can be configured to detect dodgy chips and automatically fall back magstripe, or a more basic form of processing. But your bank may block these transactions, because they can’t perform chargebacks on them, they’re considered as “secure/good as” Chip and PIN transactions by the card network for merchants in some parts of the worlds (e.g. the US). So if a fraudulent transaction was performed that way, the bank would have to eat the entire cost themselves.
I think that actually made more sense. In a power outage the bumps were the only backup. I had seen it used once at a petrol station. While there is close to no situation where a chip payment or nfc couldn’t be used.
Only for ATM transactions. It’ll still work for normal transactions at a POS device, but they’re lower risk for the bank as it’s easy to perform chargebacks and recover the money
That’s correct and stripes are mostly used as a fall back now a days, if at all. Merchants are reluctant to use stripe because in case of chargeback of a striped payment the liability shifts to the merchant, no question asked. That’s how the payment networks got merchants to migrate to use chip based authentication.
The biggest reason in the US is the cost of replacing gas station pump payment terminals. They held back going "full" EMV (no stripe at all) for many years.
