EMV Card
EMV Card Definition
EMV cards, also known as chip cards, are a type of payment card that contains an embedded microchip. These cards are designed to provide enhanced security and reduce fraud in card-present transactions, such as making purchases at a retail store or using an ATM.
The term "EMV" stands for Europay, Mastercard, and Visa, the three companies that originally collaborated to develop the standard for these cards. EMV cards are now widely used globally and have become the standard for payment cards in many countries.
How EMV Cards Work
EMV cards use advanced technology to improve the security of transactions. When an EMV card is used for a transaction, the microchip generates a unique code for each purchase, making it more secure than traditional magnetic stripe cards.
Here is how the process works:
Card Insertion: When a cardholder wants to make a payment, they insert their EMV card into a card reader at the point of sale or ATM.
Card Authentication: The card reader sends a request to the chip on the card to authenticate it. The chip provides a digital signature to prove that it is a genuine card and has not been tampered with.
Unique Transaction Code: Instead of transmitting the card's actual information, such as the card number, to the payment terminal, the chip generates a unique transaction code for each purchase. This code cannot be used for future transactions, making it much more difficult for fraudsters to replicate or reuse card data.
PIN Verification: In addition to the unique code, EMV cards also require cardholders to enter a PIN (Personal Identification Number) rather than providing a signature. This adds an extra layer of security, as the PIN is known only to the cardholder.
By combining these security measures, EMV cards significantly reduce the risk of fraud and protect cardholders' sensitive information.
Prevention Tips
To make the most of the security features provided by EMV cards, here are some prevention tips to keep in mind:
Use your EMV chip card whenever possible, and try to avoid using the magnetic stripe when making in-person payments. The chip offers the highest level of security.
When using an EMV card, always keep it in sight during transactions to prevent any unauthorized copying of the card information. Be cautious of devices or individuals that might attempt to skim or steal card data.
Ensure that you are the only person who knows your PIN, and never share it with anyone else. If you suspect that your PIN has been compromised, contact your card issuer immediately to change it.
Related Terms
Contactless Payment: Contactless payment is a payment method that allows customers to tap their EMV cards or other devices near a contactless-enabled point-of-sale terminal to complete a transaction. Contactless payments are becoming increasingly popular for their convenience and speed.
Skimming: Skimming is a type of fraud where criminals capture data from the magnetic stripe on the back of an EMV card to create counterfeit cards. This is why it is important to use the chip whenever possible and be cautious of devices or individuals that might attempt to skim card data.