EMV, which stands for Europay, Mastercard, and Visa, refers to a global standard for secure credit and debit card transactions developed by these companies. The microchip technology that makes it possible has been widely adopted in many countries around the world, helping to reduce card fraud.
How EMV works
EMV cards contain a small microchip that stores cardholder data, such as the card number, expiration date, and cardholder name. When an EMV card is used for a transaction, the chip communicates with the payment terminal to verify the cardholder’s identity and authorize the transaction.
Using dynamic authentication makes EMV transactions more secure than traditional magnetic stripe transactions: each transaction generates a unique code that can only be used once, so it is much more difficult for fraudsters to intercept and steal payment information.
Benefits of EMV
EMV technology offers several benefits over traditional magnetic stripe cards, including:
- Increased security – advanced encryption protects cardholder data from theft by fraudsters, and offers greater protection against counterfeit cards.
- Increased interoperability – as a global standard that is accepted by a wide range of merchants and payment processors, EMV cards can be used by consumers to make purchases in many countries around the world, without the need to carry multiple currencies or payment methods.
Implementing EMV
Implementing EMV technology can be a complex process, as it requires businesses to upgrade their payment systems and train their staff on how to use the new technology. Businesses may also need to purchase new payment terminals that support EMV, and update their point of sale (POS) systems to integrate with the new technology. However, the benefits of EMV technology, as mentioned above, make it a worthwhile investment for many businesses.
