EMV technology has been a standard form of payment acceptance in Europe, but the U.S. is finally taking hold of the credit card infrastructure in light of the growing threat of credit card fraud. EMV technology includes a microprocessor chip of encrypted data to make payment transactions more secure using a “Chip and Pin” to verify the cardholder during payments to decrease the risk for fraud.
Unlike magnetic strip transactions, where only the credit card number and expiry date are processed, the chip-based transaction contains numerous pieces of information to be exchanged in order to complete the transaction. The complex processing adds additional security support to payment applications.
“These new and improved cards are being deployed to improve payment security, making it more difficult for fraudsters to successfully counterfeit cards,” said research director, Julie Conroy.
For merchants, this means the new technology must comply by the new liability rules, or they will face costly charges should fraud occur. For customers, this means a more secure payment process.