EMV

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Related to Chip and Signature: Chip and PIN

EMV

(Europay, MasterCard and Visa) The international standard for smart credit and debit cards that have a built-in microprocessor (chip cards). Governed by EMVCo LLC. (www.emvco.com), the EMV smart card is more secure than a magnetic stripe card.

Not Quite So Secure
EMV cards were never designed to prevent fraud when credit card numbers are stolen and used online ("card-not-present"). However, they were intended to be more secure than fraudulent magnetic stripe cards. Credit card data can be illegally captured at point-of-sale terminals and easily copied onto blank stripe cards with an encoder (see skimming).

EMV initially prevented fraudulent "card-present" transactions because the chip card, which encrypts the data and generates a unique transaction code for each purchase, was considered extremely difficult to duplicate. However, in 2018, crooks in Brazil were the first to figure out how to create valid EMV duplicates. See 3-D Secure.

Insert or Tap
EMV cards are either inserted into the terminal slot, known as "card dipping," or they can be contactless using near field communication (NFC) to transfer data by merely tapping the card on the terminal. Cards may also support both methods. See NFC.

EMV Authorization Methods
In addition to using the card in the merchant's terminal to make a purchase, Chip and Signature requires a written signature like magnetic stripe transactions. Chip and PIN is used for debit cards and may also be used for credit cards. See smart card and gold chipped supercomputer.


The Chip Card Logo
The icon with the NFC radio waves on this payment terminal shows an EMV card being tapped to transfer the data.







The EMV Chip
In this example, five of the eight contacts on the surface of the plastic card (top) are wired to the chip underneath.







Contact and Contactless
This Verifone reader accepts chip cards (arrow) as well as contactless payments via smartphone. (Image courtesy of Verifone Systems Inc., www.verifone.com)
References in periodicals archive ?
A study by the council found 25% of those who use chip and signature had problems trying to use these cards, getting embarrassed by holdups, as many shops are simply not aware of how they work.
All banks are obliged to offer chip and signature cards and all shops are obliged to accept them to meet the terms of the 2010 Equality Act - the Payments Council wants to ensure people know these cards are readily available.
A study by the council found 25 per cent of those who use chip and signature had problems trying to use these cards, getting embarrassed by holdups, as many shops are not aware of how they work.
The charity's chief executive, Kate Nash, says: "It is essential that card issuing companies continue to promote the availability of chip and signature cards, and work hard to ensure that retailers are aware that not all customers will be using chip and PIN.
There is also worry that elderly and disabled people have not been told they can get chip and signature cards.
Both in the run up, and even after February 14, cards that have yet to be upgraded, cards from overseas and chip and signature cards for disabled cardholders should always be accepted.
The chip and PIN campaign urged people who needed a chip and signature card to contact their provider as soon as possible.
We accept, however, that some disabled cardholders may find using a PIN more difficult and we are pleased to see that they are contacting their banks ahead of the change and requesting a chip and signature card so they can continue to sign.
She added that people who had a disability could request a chip and signature card from their bank, and details of this option were included in all the chip and PIN literature