PROTECTING AGAINST FRAUD, UNDERSTANDING THEIR TECHNOLOGY, AND EMBRACE CHANGEOVER
Multiple credit card companies are behind the EMV chip cards and readers movement that Europay, MasterCard, and Visa started. The new lock symbol on a metallic square, representing high security, is replacing the older magnetic stripe. Now that chip-enabled credit cards and readers are protecting against counterfeit fraud better, understanding their improved technology will help you embrace this positive changeover.
Distinguishing Elements of EMV Chip Cards and Readers
Every EMV card’s secure microprocessor chip ensures safe payment cryptographic processing and information storage. This smart embedded feature delivers powerful transaction security measures plus more capabilities than traditional credit cards.
Rather than requiring the conventional quick card swiping action, customers insert smart cards into EMV terminals’ receptacle slots. They remain in those devices a little longer while chips and readers are communicating. Audible signals prompt shoppers to remove their cards and sign or enter PIN numbers if necessary.
Today, EMVCo sets and enhances unique specifications defining requirements that assure interoperability between smart cards and acceptance terminals. Payment industry organizations assist the credit card company owners as business and technical associates, increasing the already impressive supervision.
Welcome Benefits of EMV Chip Cards and Readers
Although just 25 percent of global credit card purchases occur in America, our nation experiences nearly half of all fraud. The greatest EMV advantage is reducing such illicit practices via faked, stolen, and lost cards. Besides safeguarding your customers, chip migration will help your company avoid liability for falsified transactions, which could save your corporate bottom line.
Purchasers can use smart cards for quick, easy, and secure online transactions. Linking your website to the E-Complish HostPay site will simplify your clients’ online credit card processing. We can even customize it to coordinate with your website’s distinctive design essentials, so your clients will recognize your brand instantly. They’ll receive custom receipts and email confirmations just as quickly.
Chip cards enable interoperability within the international payment infrastructure. That means that all EMV terminals at all locations around the world will accept all smart cards. Currently, they include chips and magnetic stripes, enabling usage in places that haven’t deployed EMV.
Strong Security Measures of EMV Chip Cards and Readers
EMV chips store charge details more securely than magnetic stripes. Specific issuer keys personalize smart cards. Although traditional cards are vulnerable to replication, creating counterfeit EMVs that will conduct payments successfully is fundamentally impossible. Enhanced functionality secures smart checkouts in these three ways:
- Card authentications during transactions protect against bogus usages. All sales require authentic card validations. For online shopping, issuers use dynamic cryptograms. Offline, terminals use dynamic data authentication (DDA), static data authentication (SDA), or combined application cryptogram (AC) generation with DDA (CDA).
- Cardholder verifications confirm rightful parties, protecting against stolen and lost cards. To grant mag stripe card permissions, inspecting signatures visually for matches is necessary. But EMV technology is compatible with enhanced cardholder verification methods (CVMs) including online and offline PINs, signatures, and no CVMs. Issuers base priorities on associated transaction risks. For instance, they use no CVMs for unattended devices with low sale amounts typically.
- Transaction authorizations use issuer-specified rules. Like online approvals with conventional cards, issuers receive purchase information to accept or decline payments. But smart chips generate single-sale-specific cryptogram signatures that prevent counterfeiters from using captured data for additional purchases.
Offline purchases occur at terminals without online connectivity such as ticket kiosks and in countries with high telecommunication costs. For such cases, card/reader communications involve preset issuer-selected risk parameters to determine if transaction authorization is possible.
Innovative Fraud Prevention of EMV Chip Cards and Readers
At personalization, card issuers encode security credentials. Chips store those keys securely, making them impervious to unauthorized party access. Those tactics help stop smart card cloning and skimming, common ways of compromising mag stripe cards for fraudulent activities.
Distinctive card and sale data encryptions for every usage make stealing private cardholder information and accomplishing fraudulent charges virtually unachievable. EMV technology would flag all attempts to reprocess unique codes for more charges as fraudulent. Buyers using chip cards can authenticate online payments with individual readers to counteract card-not-present (CNP) scams.
Still have questions? EMV Connection provides access to Smart Card Alliance and other industry resources along with recent news and articles on this technology. Check out EMVCo online for important information including specifications, best practices, and recent updates.