EMV Chip Card Information and Frequently Asked QuestionsLearn more about the EMV smart chip technology coined by Europay, MasterCard, and Visa with EMV chip card information.
What does EMV mean?
EMV stands for Europay, MasterCard, Visa, which are the three companies that were the first to embrace the technology. EMV cards are also referred to as chip cards, smart-cards, or chip and PIN cards.
How are EMV smart chip cards similar and different from standard credit cards?
They are similar in that they both are the same size and look about the same. Dual-interface EMV cards also have a magnetic strip on the back, just like a traditional card. The big difference is in the contacts on the top left side—a small, rectangular gold or silver circuit.
What does the circuit or smart chip contain?
The contacts on the circuit become powered up when inserted into a reader. The card contains a tiny microprocessor which has cryptographic keys, secure, encrypted algorithms to provide digital signatures, and basic cardholder account info used in some countries for offline transactions.
Where does EMV stand today?
Much of the developed world has already evolved into processing Europay, MasterCard and Visa chip and PIN cards, the United States is just now shifting toward implementation and required compliance. U.S. merchants have until 2015 to integrate EMV card readers into their point-of-sale system. Retailers who do not install the new card readers will be held liable for fraudulent charges resulting from exploitation of magnetic-stripe card data.
What are the benefits of upgrading to EMV terminals?
Implementing this technology will make card-present purchases more secure. These cards rely on a two-factor authentication process. The card with the chip acts as the first, and PIN entry is the second. These cards are not susceptible to “skimming” scams, and the chips cannot be cloned. Countries that already require chip cards have seen significant reductions in card fraud. Some report decreases well over 50 percent. This will protect you and your customers from potential unauthorized charges.
Why is the US so behind on using EMV terminals?
There are two reasons. The first is the added cost to the merchants. The second is that U.S. consumers do not care that much, since they are usually not held financially liable for fraudulent charges. Placing the responsibility of fraudulent charges onto the merchants is already an effective motivator, and EMV terminals are becoming more and more common.