In the payments industry, “EMV” has so many times been used to refer to the original EMV Contact & EMV Contactless Specifications. Over the years, EMV has emerged from a single, chip-based contact specification to include EMV Contactless, EMV Common Payment Application (CPA), EMV Card Personalization, and EMV Tokenization. There are also EMV documents and materials regarding mobile payments.
Taking a look at the trend, “EMV” has been so dedicated to worldwide interoperability and acceptance of secure payment transactions. When used in this form, EMV refers to payment chip cards that contain a coded microprocessor, which is more like a small computer that makes available strong security features and other abilities which are not possible with traditional magnetic stripe cards.
There is a metallic square in front of an EMV contact card which is referred to as the card’s contact plate. A microprocessor chip is installed in a small cavity directly behind the contact plate, which is covered by a thin resin capsule. When inserted into a card acceptance device, like a terminal, the contact plate makes it possible for the chip to connect to a reader. This connection makes the chip to get power from and exchange data with the terminal.
Contactless EMV works by holding a contactless chip-enabled payment device within the reach of a contactless-capable reader. The reader triggers the chip installed in the card, thereby enabling the exchange of data through a radio frequency without the payment device ever leaving the customer’s possession. Research has shown that a contactless transaction can be approximately 53 percent faster than a traditional magnetic stripe credit card transaction and 63 percent faster than using cash.
EMV Contact and EMV Contactless Payment Product have lots of advantages. The use of some features including data authentication, PIN entry, and cryptographic technology, provides additional security against some types of fraud (e.g. counterfeit and lost/stolen).A transaction-unique digital seal or signature in the chip proves its genuineness in an offline environment and prevents criminals from using fraudulent payment cards. Can also be used to secure online payment transactions and protect cardholders, merchants, and issuers against fraud through a transaction-unique online cryptogram. It enables enhanced cardholder verification methods and saves more information than magnetic stripe cards.