Every day, millions of transactions are taking place from card users. From buying new clothes, purchasing groceries, or monthly recurring payments, which is why the world depends on credit card processing. With transactions taking place at any given time, the rate of credit card fraud over the years has been extremely high.
EMV technology has become a worldwide phenomenon that has been implemented to reduce the amount of fraudulent activity on cards. In the past, many credit cards were duplicated and used in counterfeit transactions. However, with EMV card security technology, fraudulent activity is less likely to occur as the before rates.
How Does EMV Credit Cards Work
Credit Card Processing has changed to a new standard, the EMV chip (Europay, MasterCard, and Visa). The EMV chip protects card users with the added security of an encrypted code with every transaction, which is unable to be duplicated.
The magnetic strip standard on all cards, whether or not the inclusion of an EMV chip is included, could easily be copied and used in unauthorized transactions. With the addition of an EMV chip to credit cards, it has made it more difficult to process an unauthorized transaction.
How to Use Emv Credit Cards in Stores
Previously when making a purchase a customer would swipe the magnetic strip on the credit card reader and a transaction would process. The time of swiping cards has come to an end with new EMV technology.
A customer checking out will insert their card into the card reader in order to process a transaction. This gives a one-time-only code for each individual transaction so it can never be duplicated and used again.
Being EMV Compliant
With the switch to EMV chips on cards, stores are having to update their credit card processing to be compliant with chip technology. When a fraudulent transaction occurs, the big question is, who is liable for the transaction.
The answer is actually determined by who out of the parties is less EMV compliant. If a customer who has a card with a chip makes a transaction at a store who is not EMV compliant, then the merchant is responsible and liable for the transaction.
Credit Card Processing Update
With the EMV compliant rules affecting merchants all over, it may be time for a credit card processing system update. Most older credit card processing systems are not equipped with EMV chip readers, this means the merchant has increased liability when it comes to unauthorized fraudulent transactions.
Merchants are having to look for new and updated credit card processing units to process EMV chips. There are many new EMV credit card processing units to choose from, many with updated features that can consolidate data and streamline tasks for a business.
EMV and International Travel
Many people have concerns with EMV chips when it comes to traveling internationally. EMV technology is available internationally and has been available for quite some time. In fact, it may be more difficult for travelers who do not have the EMV chip on their credit cards to be accepted by merchants.
Over the years a high amount of credit card fraud and counterfeited duplicated cards happening internationally, especially in Europe, this caused the need for better security on cards to prevent fraud. However, in some countries, it is required to have a pin associated with your card with their particular EMV technology.
Many credit cards still aren’t equipped with a pin number, instead, they just require a signature. The signature verification cards without a pin, may not be accepted in certain countries who won’t process a transaction without a pin.