Since the standard magnetic cards being used are largely exposed to criminals capturing sensitive bank data and information, the EMV card has been making a strong presence where more banks globally are issuing EMV chip cards to their customers.
What Does an EMV Chip Card Mean?
Referring to Europay, MasterCard, and Visa, the EMV belongs to the smart chip technology as the standard undertaking for credit and debit card payments today.
Each EMV chip card contains a Primary Account Number (PAN) data and during a transaction, the PAN data is transferred between the terminal and the processing application.
The improved EMV chip based payment card was brought into existence after a profusion of large scale sensitive data was lost, stolen or counterfeited along with the many card frauds such as cloning and card skimming.
How does an EMV Card Work?
In general, magnetic strip on cards works by swiping a card through a card reader for it to process card data and get access to the account details. In the case of EMV, when the card is inserted into a reader, it locks the card to retrieve our information. Together, both – the card and the reader harmonise on a unique password for this transaction to be successful which tightens information data to prevent any fraud to take place. With an EMV card, you don’t have to perfect your swiping skills in the right direction because the chips in the card read the details in a different approach.
What are the Benefits of Having an EMV Card?
EMV cards and smart card readers are readily available in the market and have a lot of benefits in comparison to magnetic swipe cards.
- Data Flow Reduction
To prevent stealing of PAN data, the EMV certification requirements have allowed card data to forgo the route to the gateway without having to go through the process of POS applications. Unlike the swiping system involving the POS application and then progressing to the gateway which can increase the data flow and expose it to possible loopholes.
- Global Standard Interoperability
One of the biggest advantages of the EMV chip card is its use for both card and mobile payments. Any consumer of the EMV chip payment cards have access to their card on any EMV-compatible payment terminal which has seamless payment automation solution making it customer convenient even to tourists where they are able to use their digital wallets or smart cards while travelling for a faster frictionless checkout process.
- Point to Point Encryption Addition
All of the EMV devices offer a Point-to- Point Encryption (P2PE) which is a fusion of secure devices, processes and applications that encode data upon use like swiping or dipping with the merchant’s point of sale. This data is not decrypted until it is securely transported to and processed by the payment processor. While P2PE is the rightful direction to deal with minimising frauds, it also helps with criminals trying to hack card information at the point of sale (POS).