More and more people are now shifting to the new EMV credit and debit cards. EMV stands for Europay, MasterCard and Visa, the original card schemes that created EMV technology. Unlike the cards with magnetic stripes, EMV cards are equipped with computer chips. These cards were developed due to the rise in credit card frauds and counterfeits and have been designed to improve payment security as they are difficult to counterfeit. EMVco is jointly owned by MasterCard, Visa, American Express, Union Pay, JCB and Discover and manages the EMV Specifications to ensure that chip cards are operable all over the world.
For new EMV card users, it is important to understand how these cards work and to learn the new payment procedures. Some of the important questions to ask are:
How do you make a purchase payment through your new EMV card?
The use of magnetic stripe cards involves the card being read and then the transaction being made; computer chip cards work in a similar fashion. However, instead of swiping the card, it has to be inserted into a terminal slot so it can be processed. This is called ‘card dipping’. The user must wait a little while the card is being processed. If the card is pulled out too quickly, the transaction will most probably be denied. This is because when the card is dipped into the terminal slot, data travels between the chip and the financial institution that issued it to verify the authenticity of the card and make the transaction. So a little patience is required on the part of the user but the wait is worth it because it means better protection from fraud.
What makes EMV cards more secure?
The magnetic stripe of the traditional cards contains all the pertinent information about the card and user that counterfeiters can duplicate and use repeatedly to get cash from the stolen card. The small chip on the new EMV prevents this kind of duplicating. Every time a purchase is made using an EMV card, the chip creates a unique transaction code that cannot be duplicated or used again. Hence, information in the EMV keeps changing, unlike in magnetic stripe cards. EMV card stealers can breach information but it will be harder for them to gain profit from it.
What if a fraud does occur on EMV cards?
As of the 1st October, 2015 deadline, the liability for covering the losses incurred by owners of stolen credit cards falls to the party which is the least EMV-compliant fraudulent scheme. If retailers don’t change to the new technology, counterfeit cards will continue to be used successfully and the cost of the fraud will fall on those retailers.
The first round of EMV cards is equipped with a chip as well as the magnetic stripe so they can be used at a retailer that doesn’t have the EMV technology. The shift to EMV has been as easy as possible for the users, all to ensure greater security for them.