EMV Cards…… Reducing risk and complexity
The biggest economy in the world has made a shift to EMV chip cards. The convenience and security offered by EMV when compared to the magnetic stripe cards is massive. Reducing risk, complexity, cost and time-to-market is nothing to fear, EMV cards got you covered.EMV chip cards is been used by consumers to pay nationwide , because the Chip payments reduce counterfeit card fraud, enable global interoperability, and prepare for NFC mobile contactless payments.
In every chip transaction, there is always an online authentication, as part of this process the chip and card issuer communicate with each other to create a type of puzzle that consists of a short piece of encrypted text called cryptograms or dynamically generated codes that are unique to the specific card and transaction.
The cryptograms are the important components of the chip transaction that validate the genuineness of the chip and the issuer in the transaction to make sure it is not counterfeit. Also the creation of dynamic cryptograms provide increased levels of security, using this process means that even if fraudsters were somehow able to steal account data from chip transactions, they would not be able to use it to create a counterfeit card and have fraudulent transactions authorized in a chip or magnetic stripe environment.
The use of chip cards has proven to be extremely successful in producing a desired or intended result at reducing in-person card fraud in countries that have deployed chip technology. The EMV chip card includes an unthreatened microprocessor chip that can keep information securely and perform cryptographic processing during a payment transaction. Chip cards carry security credentials that are converted into a coded form by the card issuer at personalization. These credentials, or keys, are stored securely in the EMV card’s chip and are impenetrable by unauthorized parties. These credentials however help to prevent card skimming and cloning, which is one of the common ways magnetic stripe cards are compromised and used for fraudulent activity.
Also in an EMV chip transaction, the card is authenticated as being genuine, the cardholder is verified, and the transaction includes dynamic data and is authorized online or offline. Each of these transaction security features helps in preventing fraudulent transactions, even if fraudsters are able to steal account data from chip transactions, this data cannot be used to create a fraudulent transaction in an EMV chip or magnetic stripe environment, since every EMV transaction carries dynamic data.