The EMV card authentication process consists of a programmable microchip, which holds all the transaction data from cards that have been issued in its country. This allows for much more secure transactions, compared to magnetic strip cards.
Each time a consumer makes a purchase with their credit or debit card, a unique code is generated by the chip. The code is sent to the merchant’s terminal, where it securely transmits all necessary information for payment processing. This prevents data from being intercepted by criminals who use skimming devices on ATM machines or at retailers’ cash registers.
The process of EMV card authentication has many benefits for both merchants and consumers alike, including:
- Higher security
- Lower liability for merchants, in the event of a fraudulent transaction
- Faster processing times from point of sale to acquirer
- Easier reconciliation and auditing processes.
In order for a merchant to accept EMV chip cards everywhere, they must upgrade their payment terminals to include chip card readers. Not all merchants will expect immediate adoption of EMV technology.
There is a large cost involved in upgrading payment terminals to be EMV compatible, and smaller merchants may not have the resources.
EMV Card Authentication: What does it mean for consumers?
Although much safer than magnetic strip cards, EMV chip card authentication still includes many security measures that can help keep you safe while shopping online or using e-commerce platforms. Credit card numbers are still encrypted when they are transmitted to the payment processor, which prevents anyone from stealing your information without physically having access to your card itself.
When shopping online or using other e-commerce platforms, it’s important to be aware of the security notifications you’ll see before making a purchase. If you notice that the “https://” has been replaced with “http://”, this means that your information will be unencrypted while being transmitted to the merchant’s website. This is another form of data theft, known as phishing.
You should be especially wary if you receive an email or pop-up notification about suspicious activity on your credit card account. Fraudulent credit card notifications can often be a sign of a phishing scam, which you should avoid at all costs. If you receive one of these messages, any purchases made should immediately be reported to your issuing bank or other relevant parties as soon as possible.
EMV Card Authentication: What does it mean for merchants?
As mentioned previously, EMV card authentication has many benefits for merchants. One of the main benefits is lower fees and costs associated with fraudulent transactions. As soon as you upgrade to a chip-card enabled terminal, this will then become your new liability in the event that a customer’s information is stolen or compromised. This means that you will no longer have to worry about being held financially responsible for any fraudulent charges on a customer’s account that stem from the theft of their information.
Merchants will also be able to see more accurate reports and data with this form of card authentication, which will allow you to identify strengths and weaknesses in your security procedures. If you do not upgrade your payment terminals to include chip card readers, you will still be liable for any fraudulent charges that occur as a result of lost or stolen magnetic strip cards.
The process of using an EMV chip-enabled terminal requires multiple steps and is more secure than traditional card transactions. Merchants should ensure that their staff are well trained on how to complete a transaction using a chip card. The time it takes to complete a transaction is typically much longer than a magnetic strip card, so merchants should make sure that staff are well-aware of how long to keep the customer waiting.
EMV Card Authentication: How can I avoid paying fees?
In addition to potential security breaches, having to pay processing fees for every transaction on a customer’s credit card can be extremely costly over time. As mentioned above, merchants who upgrade to chip-card enabled terminals will no longer have to worry about paying these types of fees and costs associated with fraudulent transactions.
If you choose not to upgrade your payment systems or terminals to include this level of security, you will still be held accountable for any fraudulent charges that occur on a customer’s account.
While EMV card authentication provides many benefits to merchants and consumers alike, some businesses may not have the resources they need in order to make this transition in an efficient manner. The fees associated with implementing these new terminal readers can range anywhere from $500-$1000 or even more, which is a large investment for any small to medium-sized business.
The other issue with implementing this new technology is the time it takes to complete a transaction. While chip cards may provide enhanced security and prevent unauthorised access to your data, they will often take significantly longer than traditional swipe cards to process. In situations where speed is of the essence, such as restaurants or convenience stores, this may not be possible.