What Is EMV?

EMV is a technical standard that ensures the compatibility of chip-based (or smart chip) payment cards and terminals worldwide. It provides a strong form of authentication to further validate the legitimacy of the payment type that is being used, thus helping reduce fraud.

Chip-based payment transactions occur when a smart chip embedded in a plastic card or personal device (like a key fob or mobile phone) connects to an EMV-enabled terminal. The smart chip securely stores sensitive information about the cardholder's account and performs cryptographic processing to validate the integrity of the card number and data used in the transaction.

The acceptance of smart chip cards for processing transactions may result in greater security, reduced fraud and more streamlined processing, especially when combined with PIN authentication. Other potential benefits of EMV enabled payment transactions may be reduced chargebacks, more streamlined checkouts, more efficient execution of loyalty programs, opportunities for self-service and portable point-of-sale stations.


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