What is EMV Chip Card Technology ?
EVM Technology
First thing first, what is EVM? Why most banks are in the process of re-issuing all cards?
Well, EVM chip technology is becoming the global standard for the credit card and debit card payments. Named after its original developers (Europay, Mastercard and Visa), this technology features payment instruments (Cards, mobile phones, etc.) with embedded microprocessor chips that store and protect cardholder data. This standard has many names worldwide and may also be referred to as: "chip and PIN" or "chip and signature."
So here comes what is chip technology?
Chip technology (Basically a microcontroller) is an evolution in our payment system that will help increase security, reduce card-present fraud and enable the use of future value-added applications. Chip-enabled cards are standard bank cards that are embedded with a microcomputer chip. Some may require a PIN instead of a signature to complete the transaction process.
Now the time to discuss the difference of EVM and Traditional magnetic stripe card.
As we have discussed earlier that EMV (also referred to as chip-and-PIN, chip-and-signature, chip-and-choice, or generally as chip technology) is the most recent advancement in 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 payment card than on a magnetic stripe (magstripe) card, as the former supports dynamic authentication, while the latter does not (the data is static). Consequently, data from a traditional magstripe card can be easily copied (skimmed) with a simple and inexpensive card reading device – enabling criminals to reproduce counterfeit cards for use in both the retail and the CNP environment. Chip (EMV) technology is effective in combating counterfeit fraud with its dynamic authentication capabilities (dynamic values existing within the chip itself that, when verified by the point-of-sale device, ensure the authenticity of the card).
In simple, there is more advantage of EVM than that of Traditional magnetic stripes Cards. The magnetic on the traditional Card contain unchanging data. If someone copies it they can easily replicate data easily. Whoever accesses that data gains the sensitive card and cardholder information necessary to make purchases. That makes traditional cards prime targets for counterfeiters, who convert stolen card data into cash. But in the case of EVM Card, the microcontroller creates a unique transaction code which can not be used again for each and every transaction. If in case the hackers collect the information at any point of sale they can't use them with other transactions hence called dynamic in nature.
Now the verification process for an EVM Cardholder should be discussed for more clarity in the topic.
Nowadays the advanced EMV chip has strong security features that have been proven to reduce counterfeit card fraud in card-present retail environments. The Payment Card Industry Data Security Standard (PCI DSS) provides other complementary levels of security necessary when the cardholder information reaches the merchant’s system. The PCI DSS contains 12 encrypted key technical and operational requirements. Rather than focusing on a specific category of fraud, the PCI DSS seeks to protect cardholder and sensitive authentication data anywhere this data is present within the payment eco-system, thus limiting the availability of this data to fraudsters. When used together, EMV chip and PCI DSS can reduce fraud and enhance the security of the payments ecosystem.
In simple, there is more advantage of EVM than that of Traditional magnetic stripes Cards. The magnetic on the traditional Card contain unchanging data. If someone copies it they can easily replicate data easily. Whoever accesses that data gains the sensitive card and cardholder information necessary to make purchases. That makes traditional cards prime targets for counterfeiters, who convert stolen card data into cash. But in the case of EVM Card, the microcontroller creates a unique transaction code which can not be used again for each and every transaction. If in case the hackers collect the information at any point of sale they can't use them with other transactions hence called dynamic in nature.
Now the verification process for an EVM Cardholder should be discussed for more clarity in the topic.
- PIN Generation, The microcontroller initiates a purchase to get a PIN, Where the PIN is encrypted and verified by the Card Issuer.
- PIN Verification, Now the PIN is verified offline by the EVM microcontroller
- Authentication, In this step the microcontroller gives the only data for that transaction which intelligently can't use further transactions.
Nowadays the advanced EMV chip has strong security features that have been proven to reduce counterfeit card fraud in card-present retail environments. The Payment Card Industry Data Security Standard (PCI DSS) provides other complementary levels of security necessary when the cardholder information reaches the merchant’s system. The PCI DSS contains 12 encrypted key technical and operational requirements. Rather than focusing on a specific category of fraud, the PCI DSS seeks to protect cardholder and sensitive authentication data anywhere this data is present within the payment eco-system, thus limiting the availability of this data to fraudsters. When used together, EMV chip and PCI DSS can reduce fraud and enhance the security of the payments ecosystem.
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