EMV, which stands for Europay, MasterCard, and Visa, is a global standard for inter-operation of integrated circuit cards (IC cards or “chip cards”) and IC card capable point of sale (POS) terminals and automated teller machines (ATMs), for authenticating credit and debit card transactions. Europay, MasterCard and Visa collaborated to adopt cards with more secure technology two decades ago.
EMV cards are also known as chip cards, because they contain computer chips that are used to authenticate each transaction.
How do EMV cards work?
EMV cards are embedded with a microprocessor chip containing the account information; the chip is “read” when the card is dipped into the terminal, tapped against a payment terminal, or waved within a inch or so from it. (What’s required can vary.)
This process of reading a computer chip is different than a traditional card with a magnetic stripe, which is read when the card is swiped through the machine.
Why is that safer?
If a store or restaurant has its payment information hacked, that information cannot be used to make additional purchases or create new credit and debit cards. With EMV chip cards, each transaction is approved using a unique authentication code, and that code can’t be used again. Further, the microprocessor chips are virtually impossible to duplicate.
For more information on chip based credit and debit cards, please contact an account specialist at firstname.lastname@example.org or call 866.857.8786.