eCommerce Glossary
This e-commerce glossary features over 250 essential terms every online seller should know to succeed in digital commerce.
EMV stands for “Europay, Mastercard, and Visa,” and refers to a global standard for credit and debit cards that use a smart chip to enhance payment security. These cards are also known as these cards, chip cards, or chip-and-PIN cards.
How Does EMV Work?
- Chip Technology: These cards are embedded with a microprocessor chip that stores encrypted account information. This chip generates a unique transaction code for each purchase, making it difficult for fraudsters to duplicate or counterfeit the card.
- Authentication: When making a purchase at a point-of-sale (POS) terminal, customers authenticate transactions by entering a Personal Identification Number (PIN) or using contactless payment methods. The chip’s dynamic authentication process enhances security by ensuring that each transaction is uniquely encrypted.
- Contactless Payments: These cards also support Near Field Communication (NFC), allowing for secure, contactless transactions by simply tapping the card near a compatible reader.
Benefits of EMV:
- Enhanced Security: By generating unique transaction codes and using encryption, this reduces the risk of fraud and card duplication compared to magnetic stripe cards.
- Global Acceptance: This is widely adopted worldwide, with 86% of chip card-present transactions globally utilizing EMV technology as of late 2020, enhancing transaction security across borders.
- Consumer Trust: The use of EMV technology fosters greater consumer confidence in the safety of their payment information.
Best Practices for Implementing EMV:
- Upgrade POS Systems: Ensure that your point-of-sale systems are EMV-compliant to accept chip card transactions securely.
- Educate Customers: Inform customers about the benefits of EMV technology and encourage them to use their chip cards for added security.
- Monitor Transactions: Regularly review transaction data and security protocols to safeguard against emerging fraud threats.
Incorporating EMV technology significantly bolsters payment security and is a critical step for businesses aiming to protect against fraudulent activities while enhancing customer trust.