EMV chip cards are the latest in credit card security. The little chips are being integrated into more and more credit cards, and you’ll find few cards issued in the last 2-3 years come without the chip.
But what makes EMV chip cards so useful? Why would you want to use a credit card with an EMV chip?
The reason that EMV chips are so handy is that they add an extra layer of security to each transaction!
EMV chips are identical to regular credit cards in that they require a signature or PIN number input in order to be used. There are very few services that allow you to swipe credit cards without signing it inputting your PIN number. However, they do exist, and they are a hotbed for credit card fraud.
Adding the EMV chip increases the level of security used for the card. They create a unique transaction code for each purchase made, ensuring that the user of the credit card is authentic. If the PIN number or signature isn’t provided, the EMV will ensure that the merchant can’t accept credit cards.
As a bonus, the EMV also help to “hide” the sensitive information from data thieves. The information isn’t accessible via the magnetic strip, as it’s all stored on the chip. To access the data, the card needs to be inserted into an EMV-enabled card reader. The card reader will connect with the merchant account and authenticate the user before accessing the credit card information.
Not only is the security for the customer data improved thanks to the EMV chips, but the chip takes it a step further by generating a unique ID code. Each transaction is given its own code, one that is incredibly difficult to breach or duplicate. Thus, the EMV chip ensures that data thieves can’t emulate your information to make false purchases.
Here’s another awesome benefit of EMV chip cards: they use tokenization to protect your information. The EMV chip provides substituted data to the merchant account, enabling them to process regular payments or bill your card on a recurring basis. However, should someone steal that data, there’s no way to reverse it and obtain your actual data. With proper encryption and tokenization, your data is as secure as it gets!
If you’re a credit card user, it’s in your best interest to upgrade to a card with an EMV reader. If you’re looking into credit card processing for small business, it’s also wise to get an EMV-enabled card reader. It’s one major upgrade to improve your customer security!