EMV is a standard set of specifications for Chip card payments and acceptance devices. EMVCo LLC is the organization that manages the EMV standards and associated compliance processes. EMVCo manages, maintains and enhances the EMV® Integrated Circuit Card Specifications for chip-based payment cards and acceptance devices, including point of sale (POS) terminals and ATMs. EMVCo also establishes and administers testing and approval processes to evaluate compliance with the EMV Specifications. EMVCo is currently owned by American Express, JCB, MasterCard, Unionpay and Visa.

Eighty countries globally are in various stages of EMV chip migration, including Canada and countries in Europe, Latin America and Asia. According to EMVCo, approximately 1.5 billion EMV cards have been issued globally and 21.9 million POS terminals accept EMV cards as of the end of 2011. This represents 44.7% of the total payment cards in circulation and 76.4% of the POS terminals installed globally, excluding the United States.

The adoption of EMV in USA is now well underway since the liability change in October 2015 whereby whoever had the weakest technology in the payment chain had to bear the cost of a fraudulent transaction.

Card Issuers around the world are including chips in bank cards and merchants are moving to EMV-compliant terminals to increase security and reduce fraud resulting from counterfeit, lost and stolen cards.

The biggest benefit of EMV is the reduction in card fraud resulting from counterfeit, lost and stolen cards. Moving to EMV cards will also provide for US cards to be accepted in any EMV-compatible payment terminal outside of the USA. EMV technology supports enhanced cardholder verification methods and, unlike magnetic stripe cards, EMV payment cards can also be used for secure online payment transactions.

Mobile and Contactless – Implementing EMV chip technology in the United States will speed up mobile and contactless payments and make them more secure. The devices that accept EMV chip cards are dual contact/contactless devices. By installing these devices to accept EMV, merchants are also readying themselves to accept mobile and contactless payments as well.

To avoid being financially liable for any fraudulent card transactions and to ensure EMV compliance you will need to be able to accept Chip card payment via a Chip reader (insert type not swipe as currently used), failure to do so could make your organization liable if your card data is breached.

    • Card authentication – protecting against counterfeit cards.
    • Cardholder verification – authenticating the cardholder and protecting against lost and stolen cards.
    • Transaction authorization – using issuer-defined rules to authorize transactions.
    • EMV cards store payment information in a secure chip rather than on a magnetic stripe, it is virtually impossible to create a counterfeit EMV card that can be used to conduct an EMV payment transaction successfully.