EMV

JGC VISA01s

Kontaktfeld.Kreditkarte.EMV-Standard

ChipAndPin

EMV is a technical standard for smart card payment cards and for payment terminals and automated teller machines that can accept them. EMV cards are smart cards (also called chip cards or IC cards) that store their data on integrated circuits rather than magnetic stripes, although many EMV cards also have stripes for backward compatibility. EMV stands for Europay, MasterCard, and Visa, the three companies that originally created the standard. The standard is now managed by EMVCo, a consortium with control split among Visa, MasterCard, JCB, American Express, China UnionPay, and Discover.

History

The EMV standard was developed to combat fraud and ensure security for global card payments. Before EMV, magnetic stripe cards were widely used, which were more susceptible to skimming and cloning. The development of EMV technology began in the 1980s, with the first version of the standard being published in 1995. The adoption of EMV technology has been gradual, with some regions like Europe leading in implementation, while others, such as the United States, have been slower to adopt.

Technical Details

EMV cards are equipped with a microprocessor chip that provides strong transaction security features and other application capabilities not possible with traditional magnetic stripe cards. When an EMV card is inserted into a terminal, the chip communicates with the terminal to ensure the card is valid, which significantly reduces the possibility of counterfeit fraud. Transactions with EMV cards can be authenticated in several ways, primarily through PIN (Personal Identification Number) verification or a signature. The chip also enables "offline" transactions, allowing the card and terminal to approve transactions without needing real-time authorization from the card issuer.

Implementation

The implementation of EMV technology involves changes in the infrastructure of payment systems for merchants, banks, and payment processors. This includes upgrading or replacing payment terminals to accept chip cards and modifying software to process EMV transactions. The shift to EMV also necessitates changes in the issuance of cards, with financial institutions issuing new EMV cards to their customers.

Global Adoption

The adoption of EMV technology varies by region. Europe, Canada, Latin America, and the Asia Pacific region have seen widespread adoption of EMV technology, with significant reductions in card-present fraud as a result. The United States started its shift towards EMV technology later, with a notable increase in adoption following the EMV liability shift in October 2015, which transferred liability for fraudulent transactions to parties that had not adopted EMV technology.

Benefits and Challenges

The primary benefit of EMV technology is the significant reduction in card-present fraud. EMV cards are much harder to counterfeit, and the use of PINs and other forms of authentication provide additional layers of security. However, the transition to EMV technology has presented challenges, including the cost of upgrading equipment and the need for both consumers and merchants to adapt to new payment processes. Additionally, while EMV technology addresses card-present fraud, it does not directly prevent card-not-present (CNP) fraud, such as that occurring in online transactions.

Future Developments

The future of EMV includes advancements in contactless payments and mobile payment technologies, where EMV standards are being applied to secure transactions made with smartphones and other devices. The ongoing development of EMV technology aims to further enhance security and convenience for both merchants and consumers.