What Is EMV?
EMV is the global standard for chip-card payments, using an embedded microchip to generate dynamic transaction data that provides stronger protection against certain counterfeit-card fraud than magnetic stripe. EMV is a technology standard, distinct from PCI DSS compliance.
Direct Answer
EMV is the global standard for chip-card payments, using an embedded microchip to generate dynamic transaction data that provides stronger protection against certain counterfeit-card fraud than magnetic stripe. EMV is a technology standard, distinct from PCI DSS compliance.
Direct Answer
EMV is the global technical standard for chip-card payments, named after Europay, Mastercard, and Visa. EMV cards carry an embedded microchip that generates dynamic transaction data for each payment, providing stronger protection against certain counterfeit-card fraud than the static data on a traditional magnetic stripe. EMV is a technology standard; it is not the same as PCI DSS compliance.
How It Works
During an EMV transaction the card is inserted (or tapped, for contactless EMV) into a compatible terminal, and the chip generates a unique cryptogram for that transaction. The terminal and card network use this data to authenticate the card. This differs from a magnetic stripe, which holds static card data that can be copied. EMV is maintained by EMVCo, the organization that manages the standard.
Key Points
- EMV is a chip-card standard, not a specific product or terminal brand.
- The chip creates dynamic transaction data, making certain counterfeit-card fraud harder.
- EMV reduces certain counterfeit-card fraud; it does not eliminate fraud, does not prevent card-not-present fraud, and does not make a merchant PCI DSS compliant.
- Accepting EMV generally requires a chip-capable terminal.
What Merchants Should Know
Using EMV-capable terminals can help reduce your exposure to counterfeit-card fraud, and in many regions merchants who do not support chip transactions may bear liability for certain counterfeit fraud under network liability shift rules. EMV and PCI DSS compliance are separate obligations — one does not substitute for the other. Confirm your hardware supports both chip insert and contactless EMV.
