EMV chip technology is becoming the global standard for credit card and debit card payments.
This technology features payment instruments (cards, mobile phones, etc.) with embeddedmicroprocessor chips that store and protect cardholder data. This standard has many namesworldwide and may also be referred to as: “chip and PIN” or “chip and signature.”
What is chip technology?
Chip technology is an evolution in our payment system that will help increase security, reduce card-present fraud and enable the use of future value-added applications. Chip-enabled cards are standard bank cards that are embedded with a micro computer chip. Some may require a PIN instead of a signature to complete the transaction process.
What makes EMV different than the traditional magnetic stripe card payment?
Simply put, EMV (also referred to as chip technology, chip-and-PIN, or chip-and-signature) is the most recent advancement to combat fraud and protect sensitive payment data in the card-present environment. Payment data is more secure on a chip-enabled payment card than on a magnetic stripe (magstripe) card, as the former supports dynamic authentication, while the latter does not (the data is static). Consequently, data from a traditional magstripe card can be easily copied (skimmed) with a simple and inexpensive card reading device – enabling criminals to reproduce counterfeit cards for use in both the retail and the CNP environment. Chip (EMV) technology is effective in combating counterfeit fraud with its dynamic authentication capabilities (dynamic values existing within the chip itself that, when verified by the point-of-sale device, ensure the authenticity of the card).
What will EMV do for my business?
- Reduce risk of counterfeit, lost or stolen card fraud
- Reduce card skimming at the point of sale
- Enable acceptance of foreign cards that are already EMV enabled
- Modernize your POS
- Enable PIN transactions for credit and debit cards
What Happens If I Don’t Switch to EMV?
Merchants who have not invested in chip-enabled technology may be held financially liable for in-store fraud that could have been prevented with a chip-enabled acceptance device.