EMV, also known as “Chip Cards“, “Smart Cards”, or sometimes “Chip and PIN” is a series of specifications that define a more secure method of payment. It was developed jointly by Europay, MasterCard and Visa in the mid-1990s.
Most of the world has either migrated to EMV or is in the process. Many have questioned if and when the U.S. would move to EMV.
U.S. financial institutions started issuing EMV chip cards to their frequently traveling customers. But when both U.S. neighbors, Canada and Mexico, deployed EMV in response to mandates from the card brands, U.S. cross-border counterfeit fraud spiked. The U.S. is one of the last countries to adopt EMV and global fraudsters know it.
How it works
EMV introduces a small computer or "chip" to every payments device. This chip stores information, performs processing, and contains secure keys which help to generate the cryptographic data. The most important feature of EMV is dynamic data generated with each transaction. This dynamic data makes it nearly impossible to create counterfeit cards, or replay intercepted transactions.
EMV card chip
Benefits of EMV
EMV is designed to protect against counterfeit fraud through authentication of dynamic data generated by chip cards, smart phones, and other EMV-compliant devices. EMV also provides risk management parameters at the card level, and when used with PIN, can offer protection against lost and stolen fraud.
EMV point-of-purchase technology works hand-in-hand with other products and services like Dynamic Currency Conversion, Point-to-Point encryption and PIN based debit and opens the door to implementing new features like contactless and mobile payments in which consumers have expressed interest.
Count on us
GlobalPay Payments continues to lead the industry in its mission to be the most trusted EMV processor.
The impact of EMV adoption to the entire payments infrastructure will be significant. From terminals to ATMs, and from card issuers to merchants, the time to start planning is now.
Contact us today to learn more about getting an EMV-enabled terminal, or integrating your POS software to enable EMV.