What is EMV Technology?
EMV Technology is a global standard for interoperability among credit and debit cards across various vendors. EMV Technology uses a chip to store the cardholder’s information, making it difficult to counterfeit the card.
The chip has a unique code that can be verified by the retailer or terminal when processed. Credit/debit cards with this new technology are universally accepted throughout the world as well as in the United States.
What Does EMV Technology Offer?
EMV technology offers the highest level of card security for both credit and debit cards. The chip technology does not allow sensitive data to be exchanged between a merchant’s terminal and card during the transaction.
Therefore, merchants are protected against payment fraud. In cases where the card is physically present at the point of sale, the use of This technology provides improved protection against skimming attacks because sensitive card data is not stored by the merchant.
Cardholder information is also prevented from being copied or cloned by counterfeit chips. Card-present fraudsters will be put out of business due to the physical presence requirement. EMV’s encryption standard ensures that only the cardholder can use their cards.
How Does EMV Technology Work?
EMV Technology works with a credit/debit cardholder’s information stored on a chip that is processed by the merchant or terminal during each transaction. The card can be processed without any sensitive data being exchanged between the merchant or terminal and the credit/debit card.
EMV also provides protection against skimming attacks because the sensitive credit and debit card data is not stored by the merchant. This technology also offers security features such as 3-D Secure, Dynamic Card Verification Code, and Contactless Payments.
EMV Technology Features and Benefits
The new EMV technology is a big step forward in card security for both consumers and merchants. Security features such as 3-D Secure provides heightened data security protection when used with online payments, requiring a PIN number or password to complete the transaction; and Dynamic Card Verification Code, which is a one-time code generated for each transaction, providing an extra layer of security against counterfeiting.
As technology continues to evolve, This technology will be able to support additional features such as biometrics and contactless payments. Currently, the United States leads in payment innovation with the use of contactless payments.
The technology is already in place to support the use of EMV technology for contactless payments, once the liability shift takes place.
EMV Technology is Easy to Use
The credit/debit cardholder’s information stored on a chip offers convenience and safety when used at merchants that have terminals that support EMV technology. Merchants are making the switch to accept all types of cards, whether they have the new chip or not.
When a consumer makes a purchase with a card that has EMV technology, they will dip their card into the terminal and leave it in place throughout the entire transaction. If the card is removed from the terminal during processing, then an alert prompts the consumer to insert their card back into the terminal.
Consumers can use a PIN or sign for purchases at merchants that do not have terminals that support “dip & go”.
EMV Technology is Affordable
Merchants are not required to make any initial investment for EMV technology, they just need to replace their existing credit and debit card terminals with ones that accept the new chip. This will come from their merchant credit card processing company at no cost to the merchant.
Once a merchant’s current terminal expires, they will need to replace it with one that supports EMV technology. They can choose from a variety of terminals at many different price points which should be available at their current provider or new merchant services provider.
EMV Technology is Easy for Consumers to Use
Once the transition period for installing the new terminals is over, consumers will not notice any difference when they make a purchase at a merchant that accepts EMV technology. Consumers will still dip their card and sign for transactions, just like today.
EMV Technology is Smart
The chip will hold all of the information that is printed on the back of the cards today, such as your name, credit limit, expiration date, and security code.
It also holds your PIN number when transactions are completed online, over the phone or by phone.
It will be convenient to have all of your information in one place. Because you can leave your card at home and only carry a backup card with minimal information (backup card is not required until October 2015).
How are chips better than magnetic strips?
EMV technology is an upgrade to the traditional magnetic strip card, which has been in use for decades. The EMV chip offers a higher level of security for customers and more convenience for merchants.
EMV chip cards are difficult to counterfeit. Because they include a random 3- or 4-digit code on the front of the card and require a PIN every time it is used.
Magnetic strips do not require a PIN or signature. But can be replicated with sensitive information from purchases made with a traditional credit card, making them more susceptible to fraud.
What is the difference between chip and contactless payment transactions?
Different types of EMV cards are available.
One type is the chip card.
which has an embedded microchip that stores information and doesn’t require a signature or PIN number for authorization.
The other type is contactless payment transactions.
which allow consumers to wave their cards in front of readers separate from any contact with a sale terminal to make a purchase.
Write a conclusion about the above content.
EMV technology is an upgrade to the traditional magnetic strip card, which has been in use for decades. The EMV chip offers a higher level of security for customers and more convenience for merchants. It also holds your PIN number when transactions are completed online, over the phone or by phone.