EMV cards have come as the next big thing for secure payments in the US. Magnetic stripe cards are now the things of the past. EMV takes credit card security to a whole new level as it significantly cuts down the risk of counterfeit payment. A fraudster will find it hard to copy the EMV chip, though they can easily steal the data from magnetic stripe.
What is EMV?
EMV chips are the global standard for debit card and credit card payments. According to Visa, it managed to reduce fraud by 66% in two years or so. Named after Europay, MasterCard and Visa, its developers, EMV is backed by microprocessor chips which protect and store your data. These are simply bank cards with microprocessor chips. Some cards need a PIN to complete the process, instead of signature. Chip cards generate code to verify transactions. Hence, it is not easy to steal your chip card data.
Widely-used EMV Technologies
Contactless – As the name suggests, these devices can be tapped or waved on the contactless POS terminal. It uses a radio frequency to contact a reader. They also have cryptographic features for added security as compared to using magnetic-stripe credit cards.
Contact-based – These cards have cryptographic features to avoid counterfeiting of your bank cards. They are even better in terms of security with added functions.
QR Codes – There are two main use cases related to QR code payment –
- Consumer mode – In this process, the customer opens the QR code on their device and shows the same to the merchant to scan through an optical scanner.
- Merchant mode – Here, the merchant shows the QR code and the customer scans the same through their mobile device.
Mobile – It consists of replacing cards with mobile devices. This way, customers can easily make payments by entering a few details of the merchant using a mobile wallet.