EMV cards are a type of payment card that uses a specific technology standard to enhance the security of card-based transactions.
The term “EMV” stands for Europay, Mastercard, and Visa, the three companies that initially developed this payment technology. EMV cards are often referred to as “chip cards” because they contain a small microchip on the front that is used to store and process transaction data.
EMV technology is developed to reduce point-of-sale fraud in card-present transactions, such as those that occur at point-of-sale terminals in physical stores. Traditional magnetic stripe cards are susceptible to skimming and cloning, where thieves can capture the card’s data and create counterfeit cards.
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EMV cards provide an extra layer of security by generating a unique transaction code for each purchase, making it much more difficult for thieves to create fraudulent transactions.
With an EMV card, secure payment becomes feasible for business owners as it is backed by detailed technology with these features;
1. Chip technology – which enhances secured payment processing
2. Cardholder verification – requires the holder to sign or use their PIN
3. Unique authentication – each transaction requires the generation of a unique code that can only be used once.
Note
EMV cards can only be used on PoS terminals that are compatible with the EMV technology.
