Just as we thought we were evolving by switching from cash to credit cards, we still find that the security of our credit cards are being threatened. This is why Europay, Mastercard and Visa have teamed up to create the EMV Chip that you are now seeing in your credit/debit cards.

Not many people seem to understand the purpose of switching over to EMV but we’re here to help explain it!

How does it work?

The EMV chip has upgraded transactions from the original “swipe” to the new “insert.” When prompted, the credit card machine will tell you when to insert your chip, allowing the card to stay in the machine throughout the whole transaction. This is a further analysis of the card than what would be taken from swiping the magnetic stripe that we are used to. It also allows contactless purchases, for example, “tapping” your card on the machine for transactions.

Is fraud still possible when you have an EMV card?

Fraud is yet to become 100% avoidable, however, using the EMV chip cards has brought us much closer. There are little computer chips in each card which create a different code per transaction. This means that even if a hacker is to find out your chip information, the card will show up as declined when they try to use it.

Why should businesses switch to EMV?

Other than helping your customers avoid fraudulence in their transactions, there are other benefits in businesses switching to EMV. As of October 2015, a law passed stating that the least EMV-compliant party involved in the fraudulent transaction will be liable for the credit. The benefits of becoming EMV-compliant include not being liable for any occurrences of fraud that may occur.

Being EMV-compliant is strongly recommended for all businesses as it is the more technologically-advanced method of payment leading to a safer transaction experience for all of your customers!