Undoubtedly, digital payment options have made our lives much easier, but they are prone to data breaches. Online retailers and buyers need a reliable and secure solution for completing their payment options. EMV (Europay, Mastercard, and Visa) chip cards are gaining massive popularity in online business. This technology plays a pivotal role in improving global efforts for payment security.
The high-security standards of EMV are forcing consumers and businesses to invest in EMV software development services to protect their credit card information. EMV technology reduces the potential for fraud and enables merchants and buyers to perform payment operations whenever they want.
EMV has become a highly-recommended standard all over the world. You might have some questions about how EMV works. Below we have shared five facts about EMV technology that will help you understand its importance.
Benefits of EMV
EMV (Europay, Mastercard, and Visa) is a new standard for point of sale (POS) and automated teller machines (ATMs). It consists of an integrated circuit chip, which encodes every transaction differently. EMV is the most excellent alternative to mag stripe (magnetic stripe) technology used in credit and debit cards to handle cardholders’ data. EMV technology offers a higher level of security than magnetic stripe technology.
Unlike traditional debit or credit cards, an EMV card comes with a specific loophole that you can use in dipping situations, swiping, and contactless payment options. This card has a simplified working process. You just need to insert your card into an EMV card reader and wait for the transaction to be authenticated.
EMV technology is virtually impossible to counterfeit. It means you can rest assured that your account is safe to use when swiping your card locally. The added security features of EMV cards help you streamline your payment processing. You can also enjoy the following benefits of these new cards:
- The added security of EMV technology reduces the risk of fraud and protects your account against unauthorized use without any liability.
- You can use your EMV card in more than 130 countries worldwide.
- Nearly 2.4 billion chip cards are there, making it harder for hackers to steal your cards’ data.
- EMV cards are based on smarter and more advanced technologies. When you use an EMV card at a chip-activated terminal, the embedded card’s chip will generate a one-time password. This approach does not allow any thief or hacker to copy your code.
- You can also get a one-time code for mobile transactions and EMV tokenization.
5 Facts about EMV
- EMV Provides Several Payment Options
EMV technology enables businesses to issue payment tokens for multiple devices, including mobile wallets and wearable devices. Consumers can use these EMV tokens for card-present and card-no-present transactions. They can make these transactions across various channels, such as in-app payments, in-store purchases, and online payment options. Merchants and customers can use the following EMV payment options:
- Chip and PIN Card
EMV cards feature PIN transactions, making payment operations more secure and fast. With a chip-based EMV payment solution, you will be asked to provide a PIN code for successful marketing.
- Contactless Payments
Statistics reveal that over the past few years, revenue generated by contactless payments has increased by 150%, and it is expected to grow more rapidly in the coming years. EMV technology also features a contactless payment option to help businesses complete payment operations more effectively.
- Card-Not-Present Payments
CNP (card-not-present) is an excellent payment option that enables you to complete a transaction without providing your card to the merchant. You can make NFC transactions through mobile wallet, in-app, and online payment options.
- EMV Cards Use a Dynamic Encryption
Dynamic encryption makes the foundation of EMV technology. It means all of your data is encrypted before it is transmitted. The retailer can’t store your credit card number when you create an online payment through an EMV card. Retailers can only keep an encrypted card that represents your card information.
The term dynamic encryption refers to the added security feature of EMV cards. Each time you make a transaction or buy a thing with your EMV card, the chip will generate a unique code for that transaction. It adds a layer of protection to credit cards and protects them against data breaches.
- 3D Secure is an EMV Equivalent for Online Payments
With the massive rise in eCommerce payment options, some new specifications have been added to EMV technology. The system has evolved its specifications beyond its original chip standard to support card-based transactions securely. 3DS (3D Secure) is an EMV equivalent global standard for authenticating your CNP (card-not-payment) transactions made through e-wallets, apps, browsers, and mobile phones.
3D Secure has powerful anti-fraud features that are used to analyze several potential risk indicators. The data obtained by 3DS analytics is sued by issuing banks to identify the risks associated with user transactions. Legitimate cardholders can complete the transactions without interruption, while a suspicious transaction is subjected to different challenge flows. These flows may require authentication via email or text.
- Swipe Transactions Take Less Time Than EMV Transactions.
EMV transactions are more secure but may take longer than swipe transactions. This is because EMV technology requires you to invest in new card readers. You have to insert your EMV card instead of just swiping the card. The new evolvements in EMV technology claim to speed up the transaction process.
- Users will not be Responsible for Data Breaches.
Since the PIN and chip technology is still in transition, you might ask what will happen if a customer swipes their EMV card because retailer still needs to install new machines. According to Liability Shift, vendor will be responsible for any data breaches. In other words, if a retailer requires a customer to swipe their card and someone steals the data, it will be the merchant`s responsibility.
Conclusion
EMV (Europay, Mastercard, and Visa) technology can reduce the security threats associated with online transactions. Consumers and merchants can seamlessly use different EMV payment solutions to complete their online payment operations. You can partner with a reliable EMV software development company like Edvantis to upgrade your business technology and avoid data breaches.
