What Is EMV Chip Card? How This Technology Works to Store Your Data from EMV Credit Card?

EMV (Europay, Mastercard, and Visa) is a global payment standard based on smart chip technology used in payment cards. Unlike the traditional magnetic stripes, these are more equipped to offer comprehensive protection and security. Over the years, EMV chip cards have grown exponentially and thoroughly improved credit card security systems. But that is not all.

The chip cards have also reduced in-store payment fraud to offer better credibility and security. That is why they have become the number one pick for most customers who want to carry out their transactions without any inconvenience or hesitation.

EMV is a secure payment technology standard that is used all across the globe. The EMV standard is now managed by EMVCo, a consortium formed by major payment networks including American Express, Discover, JCB, Mastercard, UnionPay, and Visa. Practicing EMV transactions is also easier than ever. In chip-and-PIN transactions, the EMV card is inserted into a terminal, and the user enters their PIN to authenticate the transaction securely. In this article, you will also learn about EMV chip debit cards. By understanding these terms, you can be better equipped to use them when in need.

How EMV Chip Card Technology Works and Improves Security

EMV chip cards are backed by an assortment of potential features that make it an industry standout today. Here’s what they are.

#1 What Is an EMV Chip and How Does It Work?

You might wonder why a chip may need to be inserted into a credit card when we can swipe it instead? Well, that is only for one reason – security. You see, a smart chip is a type of mini-computer that contains memory, microprocessor, and application software. It is also of such good quality making it hard to crack it. But if that is not all, the chip also comes with a security vault containing important keys for each card. As such, these chips help us make protective transactions without any worries.

#2 Why Each EMV Credit Card Generates a Unique Code

For every transaction you make, the chip provides a specific code. These codes are not reusable. As such, one can never possibly steal the code to hack the transaction system. Apart from this, the fraudster is also not bound to steal a credit card to make a transaction — it is all in vain.

#3 How Advanced Cryptography Powers EMV Card Security

What helps authenticate the cards? The security code in the chip. And what helps generate the transaction codes? An advanced cryptography system. Yes. The chip also provides this as a prominent feature that is created using the private key infrastructure. This indicates that only a customised chip card containing the card holder’s private key is likely to generate a valid transaction. Since this system is so stringent, you need not worry about anything.

#4 EMV Tokenisation and Contactless EMV Transactions Explained

A recent addition in the security system of EMV is tokenisation. It helps facilitate e-commerce and strengthen the payment system. With the primary aim to secure card on file payments, it has dramatically reduced card rejections. This helps businesses by slashing out their loss of revenue when a specific purchase fails to be completed. Apart from this, it may also foster user experience like never before.

Why EMV Chip Cards Are More Secure Than Traditional Cards

EMV technology has significantly enhanced payment security by reducing card-present fraud globally. Over the years, a significant decrease has been observed in payment frauds due to credit card chips. That is why more people are obtaining this payment technology for their utmost convenience. But what makes EMV more secure if compared to other payment methods are the numerous security features that it has to offer. From EMV tokenisation, generating unique transaction codes, to its advanced cryptography, all of which are helpful in so many ways.

Multiple fraud reports were made in the United States regularly. However, with the use of credit card chips like EMV, there has been a 70% drop in transaction frauds for quite some time. Barclays has observed this too. The same scenario is what Canada has demonstrated to us recently. A research firm in the same location reported a reduction by nearly 50% after using EMV.

Have you also known that chip cards implement another useful feature called point-to-point encryption? This means that even if data is intercepted, it is useless to hackers due to point-to-point encryption (P2PE) protecting the entire transaction. With all these features and best practices, it is natural for this security technology to stand out among all its competitors. That is why it also stands at the apex of other security systems for safe transactions across the globe.

How Merchants Can Accept EMV Chip Card Payments

EMV transactions are those that use credit card chips. We have already talked about how these chips use chip-to-pin transactions to complete the process. If you want to make a transaction via this system, you need to insert the card and allow the customer to enter their pin. Once it is done, the transaction is secured automatically. EMV also supports contactless (tap-to-pay) functionality, enabling secure and fast transactions without PIN entry for low-value payments. If you wish to accept these transactions, you need to have an EMV-enabled credit card terminal at your firm. Especially if you are an e-commerce brand, it may help you exponentially.

Thankfully, many modern credit card terminals are embedded with EMV today. That is why locating them on the market will not be a tough nut to crack. However, they may be a bit pricey. That is why you need to compare the prices everywhere before you set your mood on buying one. Besides, make sure you check the reliability and warranty that the company offers on these devices. They only help make every penny count.

EMV-Compliant Equipment: What Every Merchant Should Know

Most people think that EMV is a hard day’s task to understand. They assume that only tech-savvy people might be well aware of this term. While you might hear of it for the first time, you are bound to find it easy if you use it. All that is important to have is an EMV-enabled credit card terminal. We have already talked about how most modern credit card terminals include them. So, you should not have to deal with too much inconvenience when using them. If you are a brick-and-mortar merchant, you might need a credit card machine that is good enough to read this card without any hindrance.

Most EMV readers have a magnetic stripe slot that helps conduct payments efficiently. They also have an NFC technology that processes contactless payments. Apart from this, they allow merchants to accept diverse wireless payments by executing EMV plastic and e-wallets. These may also come with stored credit card information. Investing in an EMV-compliant POS terminal is crucial for merchants to reduce fraud liability and meet payment network standards.

Is EMV Chip Technology Legally Required for Businesses?

There is no federal law mandating EMV use, but merchants that don’t adopt EMV risk assuming liability for fraudulent card-present transactions. Whether they wish to implement the benefits of am EMV technology for smarter and more secure payments depends on person-to-person and business-to-business. But anyone who uses EMV is bound to receive its potential financial benefits. If a specific business uses EMV technology to make smart and secure payments and has a fraud transaction, the merchant will not have to deal with the liability of the loss. It reduces to an exponential degree from their end. If it is possible, we advise you to make the most of EMV-enabled transactions for the best experience. That is why we keep fostering the need to use this type of payment for utmost convenience. We promise; it will not disappoint you.

EMV Payment Technology and Modern Credit Card Processing Solutions

We all know that the physical credit card is the most common and popular form of EMV payment. When a chip-enabled terminal backs it, it is a complete process to count on. But many other types of payment varieties may come at your service. Contactless EMV cards, mobile EMV technology, and wearable EMV technology are some of them.

Why Every Merchant Needs EMV Credit Card Chip Technology

Every business is looking for profit. But they are also looking to manage the profit using comprehensive security to abstain from fraudulent practices as far as possible. That is why they are willing to do anything it takes to make that happen. With EMV credit card processing, this dream is turned into reality within minutes. Anyone who uses EMV credit cards is bound to obtain greater security and improve their fraud protection considerably. They may also help eliminate the risks of fraudulent loss and litigation. Penalties may also be a part of the same. But if that is not all, it also offers peace of mind to customers looking to make sure that their data is 100% secure. As such, EMV makes for the perfect and ultimate way to protect your transactions.