EMV is the international standard for Chip Card technology. It was formed in the mid-1990s by Europay, MasterCard, and Visa. EMV is also known as “Chip Cards”, “Smart Cards”, or sometimes “Chip and Pin”. The EMV standards are governed by the organization EMVCo. Visit EMVCO.com.
The overarching goal of EMV is to facilitate secure global interoperability between chip cards and terminals for both credit and debit transactions. EMV introduces a small computer or “chip” to every payments device. This chip stores information, performs processing, contains secure elements which store secret information and performs cryptographic functions. The most important feature of EMV is the dynamic data generated with each transaction. This dynamic data makes it nearly impossible to create counterfeit cards or replay intercepted transactions.
EMV protects against counterfeit fraud through authentication of dynamic data residing on chip cards, smart phones and other devices that are EMV-compliant. EMV also provides risk management parameters at the card level and offers both online and offline PIN, to further protect us against lost and stolen fraud. Counterfeit fraud is growing in the United States. With the rest of the world either in the process of migrating to or already migrated to EMV, counterfeit fraud in the U.S. will become a primary target for fraudsters.
Since EMV has been implemented in every other major payment market in the world, the global payments brands have now decided it is time for the U.S. to migrate. Current card associations’ mandates and liability shifts for the U.S. are listed below.
If you are ready to upgrade your equipment and become EMV compatible, please contact Virginia National Bank so we can assist you in becoming prepared.