EMV – A Chip More ‘Attractive’ Than The Magnetic Stripe, Say Card Providers

05 Jul 2019

EMV - A Chip  More Attractive Than The Magnetic Stripe Say Card Providers
EMV - A Chip More Attractive Than The Magnetic Stripe Say Card Providers
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The magnetic stripe is all but consigned to history as a new era in credit card gateway services fast evolves. From chip and pin and contactless transactions today to biometric payments, iris recognition and beyond, tomorrow. By 2018, nearly 9 in 10 people (85.5 per cent) or 966 million, had adopted EMV cards in Europe Zone 1, which includes Cyprus. A rise of 2.9 per cent from 2017 (Latest data from the three card providers of EMV - Europay, MasterCard and Visa).

The small, square EMV computer chip embedded in a credit or debit card is fast becoming the global standard in merchant payment services. They’re the reason that an increasing number of card owners expect to quickly “tap” a terminal or enter a pin number themselves rather than let their card be "swiped" through - sometimes more than once to work properly - by a sales assistant at the supermarket checkout or store counter.
The worldwide rollout of EMV payment terminals at retail locations is intended to offer customers greater protection from the risk of data capture of magnetic stripe information, and prevent fraudulent practices such as counterfeiting, card skimming and cloning. Security is always the No.1 concern, along with speed and convenience – for both customer and merchant.

How does EMV chip card technology provide enhanced security and functionality?

In three crucial ways:
  • Card authentication protects against counterfeit cards. Unique data is created for each separate transaction so even if this data is intercepted, it cannot be used in subsequent illegal transactions.
  • Cardholder verification authenticates the cardholder and protects against lost and stolen cards. EMV requires the person making the transaction to enter a pre-set PIN before the transaction proceeds, which ensures they are the legitimate cardholder.
  • Transaction authorisation. Payments are only approved by using issuer-defined rules, either online or offline.

How are EMV chip cards read differently from cards with magnetic strips?

Customers insert their debit card or credit card into the slot of the terminal and wait a few seconds for the purchase to be authorised. If the card is removed too quickly, the transaction will not be authorised. A card activated for contactless payments is even faster as it only requires the customer to tap the card flat against the terminal screen for instant authorisation.
With increasing numbers of customers issued with, and happily using EMV chip cards, the onus is on the merchant to have the correct card equipment and systems in place. If a merchant does not have EMV-enabled technology, their business could suffer in two ways. Firstly, loss of EMV card-carrying customers, and secondly, through data security fraud and loss. The use of EMV shifts liability for certain types of fraudulent transactions from the banks to the merchants.
EMV chip card payments is the global standard -
The way your customers want and expect to pay!
Get in touch with GAP Card Processing today!