EMV

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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 ?
Chip and pin - Personal Identification Number - technology was first developed in the late 1970s and invented by Frenchman Roland Moreno.
Figures from APACS - the UK payments association - show that 185 chip and pin transactions now take place every second.
Since the formal roll-out of Chip and PIN in the UK on February 14, consumers now use their PIN in 99.
The Chip and PIN Programme said the introduction of the new cards had helped to reduce fraud on lost stolen and counterfeit cards by nearly a third during the first six months of this year to pounds 89.
Spokesman Sandra Quinn said: "This is the final phase of the successful Chip and Pin roll out.
The Chip and Pin Programme said it had reached all its 2004 roll out targets for upgrading card holders and businesses to the new system.
He said: "From January 1, 2005, fraud committed using a Chip and PIN enabled card becomes the financial responsibility of the shop, not the bank, if the technology is not available.
Banks and credit card companies have now issued 130 million chip and PIN cards, making up 92 per cent of the 141 million cards currently in circulation.
Payments group Apacs have claimed lost and stolen card fraud is down almost 30% already since the introduction of chip and PIN in the UK.