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EMV Chip

This is the EMV chip.


EMV stands for Euro MasterCard Visa which is for the acceptance of more secure payment transactions. Within the payments industry, “EMV” has often been used to refer to the original EMV Contact & EMV Contactless Specifications.  When used in this manner EMV refers to payment chip cards that contain an embedded microprocessor, a type of small computer that provides strong security features and other capabilities not possible with traditional magnetic stripe cards.


The metallic square on the front of an EMV contact card is known as the card’s contact plate. A microprocessor chip is embedded in a small cavity directly behind the contact plate, protected by a thin resin capsule. When inserted into a card acceptance device, such as a terminal, the contact plate allows the chip to connect to a reader. This connection enables the chip to get power from and exchange data with the terminal.


Contactless EMV works by holding a contactless chip-enabled payment device (typically a card or smartphone) within proximity of a contactless-capable reader. The reader energises the chip embedded in the card and allows exchange of data via 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.



Advantages of EMV Contact and EMV Contactless Payment Product

  • Through the use of features including data authentication, PIN entry, and cryptographic technology, it provides added security against certain types of fraud (e.g. counterfeit and lost/stolen)

  • A transaction-unique digital seal or signature in the chip proves its authenticity in an offline environment and prevents criminals from using fraudulent payment cards

  • Can be used to secure online payment transactions and protect cardholders, merchants and issuers against fraud through a transaction-unique online cryptogram

  • Supports enhanced cardholder verification methods

  • Stores considerably more information than magnetic stripe cards



How does the EMV card work to make a purchase?


Just like magnetic-stripe cards, EMV cards are processed for payment in two steps: card reading and transaction verification.

However, with EMV cards you no longer have to master a quick, fluid card swipe in the right direction. Chip cards are read in a different way. 

Instead of going to a register and swiping your card, you are going to do what is called "dipping the chip" instead, which means inserting your card into a terminal slot and waiting for it to process.


When an EMV card is dipped, data flows between the card chip and the issuing financial institution to verify the card's legitimacy and create the unique transaction data. This process isn't as quick as a magnetic-stripe swipe. It will take a tiny bit longer for that transmission of data to happen. If a person just sticks the card in and pulls it out, the transaction will likely be denied. A little bit of patience will have to be involved between the merchant and the cardholder.




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