8 FAQs About EMV Credit Cards

Many of us may have heard this term before “EMV”. The question is do we know what it stands for? EMV stands for Europay, MasterCard, and Visa, the three companies which created the standard. Which commonly refers to a credit card with a smart chip. In today’s article, we will discuss a few facts about it. This will help us get a better understanding and answer some questions we may have. Let’s get started!

 

What does EMV mean? EMV is a payment method based upon a technical standard for smart payment cards, for inter-operation of integrated circuit cards, IC card capable point of sale terminals, and automated teller machines, for authenticating credit and debit card transactions. It is a joint effort initially conceived between Europay, MasterCard, and Visa to ensure the security and global interoperability of chip-based payment cards.

 

How does EMV work? Chip cards work with payment acceptance devices that are certified to be compliant with EMV chip-and-PIN standards. During a transaction, the customer inserts the payment card into the terminal. The chip and the card reader communicate to authenticate the transaction.

 

What does an EMV chip do? EMV has come to represent every credit card with a chip, even those issued by smaller companies. The chips generate a new number for every transaction, they make counterfeiting almost impossible. The card is inserted into instead of swiped through a credit card reader and a signature completes the purchase.

 

Can EMV cards be hacked? Chip credit cards can be “hacked,” in a sense. However, skimmers can only copy data from your card’s magnetic stripe, not its chip, which is much more encrypted. Therefore, any copy of your card will only have a magnetic stripe.

This means that criminals can’t use it with any merchant that has a chip reader. If a merchant does not have a chip card reader, you’ll have to swipe the card. This deprives you of the extra security protections built into the chip and leads to a greater risk of fraud.

 

Why is EMV more secure? While EMV technology won’t prevent data breaches completely, it does make it harder for hackers and criminals to benefit from what they steal. It’s more secure because of the way an EMV chip stores, encrypts and transmits your financial data, identity thieves can’t create counterfeit chip credit and debit cards. 

 

What does EMV decline mean? It is important to understand that a “decline” response means the card issuer is unable or unwilling to provide authorization on the cardholder’s account. It does not mean that there was an error running the transaction. Card issuers decline transactions for many different reasons. Several factors can cause a credit card to get declined during a transaction, including:

  • The credit card is expired.
  • The credit card hasn’t been activated.
  • The credit card has been canceled.
  • The credit line has been reduced.
  • Going over the credit limit.
  • The purchase seems “suspicious”.
  • There’s an authorized hold.
  • And many more other reasons.

 

What is EMV payment processing? Short for Europay, Mastercard, and Visa, EMV card processing leverages fraud-reducing technology that helps protect issuers, merchants, and consumers against losses from the use of counterfeit or stolen payment cards at the point of sale (POS).

 

What information is stored on the EMV chip? The microchip embedded in the card stores information required to authenticate, authorize and process transactions. This is the same type of information already stored in the magnetic stripe. No personal information about your account is stored on the chip card.

 

Now that we’ve taken a look at some facts about EMV, if you’re a small business that hasn’t made the EMV switch, don’t fret. That’s why ABPay exists, to help take the burden off your shoulders and get you upgraded without any downtime. 

We provide a support team that’s available at your side 24/7 and have solutions from EMV terminals to full POS solutions, our solutions are EMV and NFC capable. Your top concern should be your customers and making sure that your business provides them with a secure payment option. 

 

ABPay is here to help you transition to better EMV credit card processing. So don’t hesitate to contact us for more information.

Leave a Reply