When a transaction takes place using an EMV card, a transaction number is generated which is unique and cannot be replicated. For business owners, it’s important to have a point-of-sale (POS) system that is compatible with EMV technology, one that can read the card’s microchip.ĮMV credit cards can now also support near field communication (NFC) or contactless card-reading technology - in this case, customers hover their credit card over or near the terminal, instead of dipping or inserting it.Īll current options contrast with the older method of swiping a magnetic stripe through a payment terminal, which opened the card user to potential security risks. EMV cards are far more secure, and can be used in dipping, swiping or contactless payment situations.Īn EMV card is also referred to as the following terms:įor consumers using an EMV card, the process is straightforward - when making a purchase, they simply dip or insert their card into a chip-enabled terminal or EMV card reader and wait for the transaction to be authenticated.

This differs from the traditional credit card which featured a magnetic stripe - a security loophole which could be easily exploited by criminals. Introduced to the United States in 2015, EMV is now the global security standard for chip-based debit and credit card transactions.Īn EMV card is a credit or debit card containing an embedded microchip. By adhering to the EMV standard, payment security is improved and the potential for fraud is reduced.

How effective is EMV technology in preventing fraud?ĮMV stands for Europay, Mastercard and Visa and refers to a payment method based upon a technical standard pioneered by these three organizations.

In this article, we’ll look at common questions surrounding EMV and how it helps to fight credit card fraud and thus increase payment security: “Bank transfers and payments accounted for the highest aggregate losses reported in 2020 ($314 million), while credit cards most frequently identified as the payment method in fraud reports”, states the paper.

As data theft remains a significant danger to consumers and merchants, EMV cards play an integral role in the global effort to improve payment security by using a technology that helps to protect credit card information.Īccording to the latest report by the Federal Trade Commission, there were over 2.2 million reports of fraud last year in the United States.

Emv card inserter