The chip on the EMV card is very difficult to duplicate. Each EMV-enabled card contains an embedded smart chip that is programmed by the card issuer to create a unique cryptogram (an encrypted code) for every transaction. This code represents a randomly generated numeral provided by the POS terminal at the time that the purchase amount is keyed in by the cashier. When an EMV chip is used in a transaction, a cardholder verification is triggered and becomes required for authentication via Chip and PIN or Chip and Signature. If connectivity with the card issuer is unavailable during a transaction, the chip determines whether the transaction can be processed offline.
Articles in this section
- What is Apple Pay?
- What is the Personal Guarantee?
- How are EMV transactions different?
- Why do merchants have to worry about counterfeit, lost or stolen card fraud?
- What happens if merchants don’t upgrade their POS system to EMV?
- Who is enforcing EMV?
- Am I required to support EMV?
- What does the liability shift mean?
- What is the timing for EMV in the United States?
- What determines whether an EMV card is Chip and PIN or Chip and Signature?