October 24, 2017
The world of payment processing has been advancing each year. With the increased need for protection and security against frauds, several measures have been developed to protect cardholders. Arguably, the most incredible protection against card frauds has been the EMV chip-based payment cards. The small golden squares on the left side of your card are what we are referring to as the EMV.
These golden squares are not on your debit or credit card to improve the aesthetic value of your card. They bring a new aspect of sophisticated technology, which protects you from fraud. With the EMV, you don’t just swipe your card as you are required to PIN to complete the transaction. With these new features, EMV cards have a greater global acceptance. Below are some advantages of using EMV chip cards.
1. Fraud Proof
Contrary to other cards, EMV cards request for PIN codes. As a result, payments through these cards are more secure and are not likely to be fraudulent. Additionally, EMV cards have features such as cryptographic technology and data authentication, which provide the cardholder with additional security against use of stolen and lost cards to do purchases or counterfeit purchases. EMV cards use dynamic digital data for every transaction. This ensures that every transaction is unique and cannot be replicated.
2. Improved Information Storage
EMV cards store more information than magnetic strip cards. This makes EMV cards act as a representation of your identity. With your personal information being stored in the EMV card, it is easy to verify if the right owner is using the card. Moreover, these EMV cards function for a longer time compared to conventional debit or credit cards.
3. Supports Contact, Contactless and Mobile Transactions
EMV does more than just contact transactions. It allows cardholders to do contactless transactions, where the holder just taps their cards against the terminal. Contactless payments are faster than the use of traditional cards with magnetic strips, which required the card owner to insert the card into the terminal for the entire transaction period.
Additionally, EMV offers a platform for secure and fast mobile payments, which allows cardholders to wave their smartphone over a terminal as opposed to tapping or swiping their cards. This allows merchants to invest in a single payment system, which allows multiple payment options for their clients.
4. EMV Can Operate In Offline Mode
Since EMV cards have microprocessors that interact with terminals, they can perform all transactions and cardholder verification online. EMV terminals are configured in a way that accepts PIN codes even when they are offline, a feature not available in the traditional cards. These cards verify data from their microprocessors and create cryptograms. This improves the security of the transaction without necessarily connecting to online banking systems.