The EMV card features a micro-processing chip that stores cardholder data securely, helping reduce the number of fraudulent transactions resulting from counterfeit, lost and stolen cards.
EMV sets the worldwide standard for bank cards used by businesses and consumers and was established to define the functional requirements for both chip card and chip-reading terminals. The EMV chip requires the merchant terminal to provide a PIN before it allows the card data to be read. Once the PIN is entered and verified, the smart card chip authorizes payment.
According to EMVCo, the organization responsible for managing the EMV specifications globally, approximately one billion EMV cards have been issued worldwide and 15.4 million point-of-sale terminals accept EMV cards.
The adoption of dual-interface chip technology also helps prepare the US payment infrastructure for the arrival of near-field communication (NFC) mobile payments by building the necessary infrastructure to accept and process chip transactions that support either a signature or PIN at the point of sale.
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