30 Jul
Have you ever noticed that some stores now allow you to insert your credit or debit card into the payment terminal instead of just swiping it? That change from magnetic strips to computer chips in our cards was meant to improve security for shopping both online and in stores. But even though chip cards were a step up from swiping, there’s an even better payment technology available nowadays called EMV.
This credit card chip technology provides stronger protection against fraud by using advanced identification methods that outsmart hackers. Some people think all chip cards are about the same, but that’s not true – EMV includes important security upgrades over regular chip cards. Let’s see in detail.
EMV Uses Dynamic Data for Authentication
With regular chip cards, the information stored on the chip remains the same each time you use it to make a payment. So if a hacker was able to steal that data, they could use it to create fake cards and make fraudulent purchases. EMV chip cards work differently by using what’s called dynamic data for authentication. Each transaction generates unique verification data, so even if hackers stole the data from one purchase, it wouldn’t work to clone the card and use it elsewhere. The information changes for every payment, making it much harder for criminals to steal and use your payment details without getting caught.
Reduces the Risk of Skimming Attacks
You’ve probably heard of skimming before where bad guys use devices to steal your card info right from the magnetic stripe when you swipe it. Well, with EMV it’s almost impossible to skim the card because the credit card security chip itself is what interacts directly with the payment terminal during a transaction. Your actual card number and security codes aren’t exposed in the same way. So thieves can’t as easily lift your details right off the card like they could with magnetic stripe cards. EMV makes skimming a lot less effective as a hacking method which improves security for everyone.
Also Read: What Is EMV And How Do Credit Card Chips Work?
Provides Better Protection Against Lost and Stolen Cards
If someone steals your regular chip card, they may be able to go on a shopping spree before you notice it’s missing and report it canceled. But EMV works differently – each transaction requires a unique security code that only the chip itself can provide. So even if a criminal finds your lost EMV card, they won’t be able to use it for purchases since they don’t have the chip to authenticate with. This extra layer of protection is really valuable in case your wallet or purse gets stolen. You won’t need to worry as much about unauthorized charges if someone takes your EMV payment card.
Encourages the Use of a Personal ID Number (PIN)
With regular technology behind credit cards, you can sometimes just sign a receipt instead of entering a PIN during transactions. But EMV puts more emphasis on requiring a PIN for extra security. Criminals have an easier time forging signatures than guessing complex PINs. By pushing cardholders to always use a PIN with EMV payments, it makes the whole process stronger against fraud. People are less likely to have their numbers stolen if they are never typed into an easy-to-hack magnetic stripe reader. Signatures can be faked, but PINs are pretty much impossible to replicate without stealing the actual card. This small thing really boosts the fraud protection offered by EMV.
Makes “Card Not Present” Fraud Harder
You may have heard about “card not present” fraud involving online or phone purchases. Criminals steal people’s card details and use them to buy things without the actual plastic. This type of fraud is tough to stop with regular chip cards. But EMV addresses it by generating one-time codes for online transactions that are only valid for a short period of time. So thieves can’t readily reuse stolen numbers to perpetrate “card not present” crimes over the internet or by phone. EMV provides better defenses against remote fraudulent activity compared to standard chip cards.
Also Read: Reasons to Use EMV Chip Readers
Offers Liability Shifting Benefits for Merchants
Under EMV regulations in the United States, liability for fraudulent transactions shifts from small businesses to banks if a merchant has properly installed EMV readers. So if someone steals someone’s card info but the cashier properly used an EMV machine, the bank has to foot the fraud bill, not the shop owner. This incentive promoted really widespread adoption of EMV across stores both big and small. It’s led to many more businesses upgrading their payment terminals to support the advanced security of EMV chip cards. More protected merchants mean less successful criminal chargebacks that steal money from local commerce.
By investing in an EMV-enabled solution like Hana Retail, your business can give shoppers confidence their payments are completely secure. It’s a smart way to meet payment industry standards and shield your stores from fraud-related costs down the road. Sign up FREE today!
