Term of the Moment
e-cash
Definition: EMV
(Europay, MasterCard and Visa) The international standard for smart credit and debit cards that have a built-in microprocessor (chip cards). Governed by EMVCo LLC., the EMV smart card is more secure than a magnetic stripe card.
Not Quite So Secure
EMV cards were never designed to prevent fraud when credit card numbers are stolen and used online ("card-not-present"). However, they were intended to be more secure than fraudulent magnetic stripe cards. Credit card data can be illegally captured at point-of-sale terminals and easily copied onto blank stripe cards with an encoder (see skimming).
Insert or Tap
EMV cards are either inserted into the terminal slot, known as "card dipping," or they can be contactless using near field communication (NFC) to transfer data by merely tapping the card on the terminal. Cards may also support both methods. See NFC.
EMV Authorization Methods
In addition to using the card in the merchant's terminal to make a purchase, Chip and Signature requires a written signature like magnetic stripe transactions. Chip and PIN is used for debit cards and may also be used for credit cards. See smart card and gold chipped supercomputer.
The Chip Card Logo
The EMV Chip
Contact and Contactless
More Secure From the Start
Not Quite So Secure
EMV cards were never designed to prevent fraud when credit card numbers are stolen and used online ("card-not-present"). However, they were intended to be more secure than fraudulent magnetic stripe cards. Credit card data can be illegally captured at point-of-sale terminals and easily copied onto blank stripe cards with an encoder (see skimming).
Insert or Tap
EMV cards are either inserted into the terminal slot, known as "card dipping," or they can be contactless using near field communication (NFC) to transfer data by merely tapping the card on the terminal. Cards may also support both methods. See NFC.
EMV Authorization Methods
In addition to using the card in the merchant's terminal to make a purchase, Chip and Signature requires a written signature like magnetic stripe transactions. Chip and PIN is used for debit cards and may also be used for credit cards. See smart card and gold chipped supercomputer.
The icon with the NFC radio waves on this payment terminal shows an EMV card being tapped to transfer the data.
In this example, five of the eight contacts on the surface of the plastic card (top) are wired to the chip underneath.
This Verifone reader accepts chip cards (arrow) as well as contactless payments via smartphone. (Image courtesy of Verifone Systems Inc.)
For many years in European restaurants, waiters have been swiping people's credit cards in their presence using a wireless terminal. The card is never away from customers' eyes.