EMV Chip Cards
In the U.S., consumers have traditionally used cards with a simple swipe. Unfortunately, magnetic-stripe cards are very susceptible to counterfeit card fraud. EMV cards are stepping in as a more secure way to pay.
EMV chip technology, developed by Europay, MasterCard and Visa, is becoming the global standard for credit card and debit card payments. The EMV standards define what is needed to ensure data exchange between payment chip cards and terminals.
Since 2015, credit card companies have been busy read the EMV chip. Businesses who do not have terminals capable of reading chip-enabled cards could be liable for counterfeit transactions so it is very important to upgrade to chip-reader terminals.
Decreased Fraud Benefits Everyone
These new cards are equipped with a “smart chip” that is capable of a much more sophisticated authentication process than magnetic-stripe cards. Essentially, there is a fully operating computer system embedded in every EMV chip card. The chip is tamper-proof, making the card nearly impossible to duplicate.
How do Chip-Enabled Cards Work?
Chip-enabled cards aren’t “swiped”—instead they are “dipped” into a terminal. (The term “dipping” means that the card is inserted into the terminal and stays there while the payment terminal communicates with the bank and the chip via RFID short-range radio communication.)
Dual Interface cards and some mobile devices can also be “tapped.” This type of payment is also referred to as “tap & pay.” For this method of payment to work, the payment terminal must be an NFC (Near Field Communication) terminal, which communicates with another device such as a smartphone with no contact. Tapping is a faster way to pay and will likely increase in popularity.
To complete the transaction, currently about 99% of all chip-enabled cards only require a signature. As EMV acceptance grows, however, issuing banks may begin issuing more cards that require a pin number.
EMV and NFC Solutions
Let us help you select EMV and NFC-enabled solutions that are best for your business. Contact us today or fill out the form below to request information.