Before we look at EMV credit card machines, let’s take a quick look at EMV technology as a whole. EMV technology features credit cards embedded with microprocessor chips that store and protect cardholder data. It is fast becoming the global standard for all card payments. EMV stands for the original developers Europay, MasterCard, and Visa. Microprocessor chips increase security and minimize fraud, offering greater protection to cardholders and merchants.
EMV credit card machines communicate with the chip embedded in your customer’s credit card to determine whether or not the card is authentic. The machine will prompt your customer to enter a pin code to validate their identity, and from there the transaction will either be approved or declined.
An EMV credit card machine has a built-in card reader. Rather than being swiped through the card machine, the micro-chipped credit card is inserted in the front of the machine where the reader is located. The credit card is left in the machine, and after a few seconds, the machine will go through a series of prompts. Following the prompts will result in the transaction either being approved or declined.
EMV credit cards still have a magnetic strip and can be swiped through traditional card machines as well. Likewise, an EMV credit card machine also has a magnetic swipe reader, so you can continue to accept payments from cards that are not chip-enabled.
EMV is a global initiative to combat fraud, and protect sensitive payment data in the card-present environment. Payment data is more secure on a chip-enabled credit card than on a magnetic stripe card. Chip-enabled technology supports dynamic authentication, while mag-stripe cards use only static technology. Data from a traditional magnetic stripe can easily be duplicated with a simple and inexpensive card reading device that enables criminals to reproduce counterfeit cards. The process is surprisingly common, and is called “skimming.” EMV technology is combating counterfeit fraud with its dynamic authentication capabilities.
Online traders have yet to see any major changes to accepting online card payments for purchases because credit card technology hasn’t yet evolved adequately to protect cardholders secure and sensitive information. There are many regulations in place that merchant card service providers have to comply with, and online traders are urged to research very well before appointing a card processing service provider. Ensure that the service provider you choose has a solid reputation in the industry, complies with all current regulations, and keeps up to date with industry changes because the integrity of your business depends on the quality of the merchant card service provider that processes your card payment transactions.