What is EMV and How Does it work?
What is EMV?
EMV is the global standard for credit card and debit card payments. Its letters stand for the three original developers: Europay, MasterCard® and Visa®.
EMV features payment technology that includes embedded microprocessor chips that store and protect cardholder data.
How is it different than traditional payment methods?
The primary difference in EMV payment technology versus the traditional process is a microprocessor chip instead of a magnetic strip. The magnetic stripe’s card data is static and is easier to track and copy. The only measure to validate the card is the number and the expiration date.
With chip technology, the data is dynamic – every transaction creates a new code. This singular code per transaction is harder for hackers to duplicate, so the transaction is more secure. Instead of just an expiration date number, transactions have more numbers and multiple steps as information is transmitted and approved from the card, to the terminal to the processor. If a card or transaction number is stolen, it means virtually nothing as a duplicated EMV code won’t work.
How does it work?
- Customer Enters Card
- Enters Pin if prompted
- After card is entered, the card's chip and the payment terminal validate the transaction type
- Cryptogram (new code) is generated to protect sensitive data
- Transaction is Approved
- Customer Removes Card
Every party involved in a transaction is affected by this new technology: customers, merchants, banks and processors. By all parties implementing and accepting this new payment style, card fraud in the United States will be drastically reduced.