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(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)

More Secure From the Start
For many years in European restaurants, waiters have been swiping people's credit cards in their presence using a wireless terminal. The card is never away from customers' eyes.
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References in periodicals archive ?
Chip and Pin was introduced to combat fraud on lost, stolen and counterfeit cards.
Brian Dodge, RILA's executive vice president for communications and strategic initiatives, echoed the arguments made by the nation's leading consumer protection advocates and urged all law enforcement officials concerned with fighting card fraud to join the chorus of elected officials and policy makers demanding that America's credit card issuers implement chip and PIN.
"The RMS EMV Chip and Pin Integration makes the fastest, lowest cost solution to become EMV compliant now, and maintain future flexibility in choosing credit card processors and devices as more processors become certified on Datacap," says Dave Durrenberger of System Solutions a Microsoft RMS Certified Partner.
In October 2014, President Barack Obama issued an executive order requiring chip and PIN technology for government-issued credit cards and upgrading point-of-sale terminals at federal buildings.
Wide-spread credit card security breaches have resulted in a payment industry decision to deploy EMV chip and PIN technology in the United States.
Besides making 'chip and pin' mandatory, RBI has asked banks to ensure that all new POS machines have the capability of authorizing transaction using biometrics," said a senior banker.
Chip and pin - Personal Identification Number - technology was first developed in the late 1970s and invented by Frenchman Roland Moreno.
The wide range of BankMuscat Chip and PIN cards features exciting design reflecting its global vision.
EMV chip and PIN technology, created by the international payment organisations, is more secure as data stored on the chip cannot generally be duplicated.
Summary: A team of researchers claim to have uncovered flaws in the Chip and Pin system which allows fraudsters to use stolen cards.
It is believed that Chip and PIN cards have contributed to lower card frauds in the UK.
Equipped with Smart Card Technology (also known as 'Chip and PIN'), the new card offers customers a much higher level of security against fraud as well as quicker transaction times.