What is EMV?
EMV is termed after its original developers: Europay, MasterCard®, and Visa® and refers to the global standard of debit and credit payment cards with chip technology. This embedded chip is a type of small computer that contains information needed to use the card for payments and is protected by various security features.
Why EMV in the U.S.?
Security and Fraud Reduction: EMV chip cards are a more secure alternative to traditional magnetic stripe payment cards. With much of the world already using the chip card, fraudsters are moving their attention to the U.S. where mag‐stripe technology is still being used. EMV chip card technology offers protection against card skimming, cloning and card counterfeiting.
Global Interoperability: As more countries have migrated to EMV chip card technology for their payment systems, U.S. mag‐stripe cardholders have encountered more acceptance issues when traveling abroad.
Movement to NFC and Mobile Payment: The EMV chip card lays the groundwork for the adoption of the contactless card and mobile payment systems growth.
Why is the EMV Chip Card more secure?
Traditional mag‐stripe cards store static account information, leaving them more vulnerable to counterfeit and card fraud because of the transaction and account information being shared. EMV chip cards store payment information in a secure chip rather than on a magnetic stripe. Each time you make a purchase with your EMV chip card the embedded chip generates a unique transaction code. This prevents stolen data from being fraudulently reused.
Will the EMV chip card look differently?
The embedded chip will eventually replace the magnetic stripe located on the back of current cards, however, it will likely take several years to achieve the adoption necessary to eliminate the mag‐stripe. Therefore, chip cards will still have a mag‐stripe on the back of the card for the foreseeable future.
Will I use my card differently at a point of sale (POS) transaction?
With a mag stripe only card, you will be prompted to swipe your card then wait for the transaction to be completed. With a chip card device, you insert your card and leave it in the device until the transaction is complete and you are prompted to remove it. The total transaction takes about 3 seconds. You may be required to sign or enter a PIN number to authenticate the purchase.
Are there any additional fees associated with using an EMV chip card?
No. There are no additional fees to use a chip enabled card.
What does the liability shift mean to me?
The liability shift occurred in October 2015 and was intended to create a sense of urgency with issuers (banks) and acquirers (merchants). The shift does not affect the liability of the cardholder. When the liability shift occurred, merchants who do not implement chip enabled point of sale (POS) devices are more susceptible to fraud and accept the liability of potential fraudulent charges. If the cardholder did not have an EMV card after October 2015 and the merchant has an EMV terminal, the card issuer (bank, etc.) is liable for any counterfeit fraud.