EMV at the Point of Sale equals added security with enhanced fraud protection that also supports emerging payment technologies
Go Beyond: Fraud Protection at the POS. These fraud-preventing microchips can reside inside a payment card, a fob or a mobile device. Regardless of the form factor, the chip technology adds one of the most important payment transaction benefits – enhanced fraud protection. Whether the payment card is inserted into the chip-enabled slot reader (contact) or waved above the device (contactless), the data on the chip ensures the card is authentic, and the PIN or signature ensures that the person presenting the card is the rightful cardholder.
StellarPay Advantages: 

• Chip Technology Benefits
  
• Increases security and fraud protection
  
• Prevents the use of counterfeit, lost and stolen cards
  
• Reduces skimming at the point of sale
  
• Decreases fraudulent transactions and charge backs
  
• Blocks the ability to copy the contents of the chip to another card
  
• Improves customer service and offers potentially faster checkouts
  
• Enables PIN transactions for both credit and debit cards, reducing the time needed
  
• to obtain a signature and the need for authorization referrals
  
• Supports contactless transactions which are approximately 53 percent faster than
  
• A traditional magnetic stripe card transaction. 2
  
• Drives innovation in emerging consumer technologies
  
• Chip-based applications can be embedded into a mobile wallet, enabling
  
• Consumers to pay via their mobile devices
  
• Chip technology works on the same contactless technology that also enables
  
• mobile payments at the POS

$8.6            Billion Estimated total cost of fraud per year in the United States
                                                           (0.4% of the $2.1 trillion card payment industry)

32%            Lost/Stolen, Counterfeit & Non-receipt fraud account for 32% of 2008 US                                                                      fraud losses,  representing approximately $2.9 billion


95%            EMV deployment in the US is estimated to eliminate 95% of lost/stolen fraud


90%            An estimated 90% of counterfeit card fraud could be eliminated with EMV                                                                   deployment in  the US

 Source: Aite Group, “Card Fraud in the United States” – The Case for Encryption, January 13, 2010

EMV is a fraud reduction technology that can help protect merchants against losses
from accepting counterfeit and lost or stolen payment cards at the point-of-sale. EMV
cards contain embedded microprocessors or chips that interact with the point-of-sale
device to ensure the validity of a payment card and the person using the card. This kind of chip or smart card technology adds layers of security against fraud and is virtually impossible to duplicate.
First introduced in 1996, there are now more than 1.62 billion active EMV compliant
chip-based cards used at 23.8 million EMV acceptance terminals in over 80 countries.1 With some recent industry announcements, it’s likely only a matter of time before smart card technology becomes a widely adopted standard in the U.S. 

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575 million: Number of EMV cards to be issued by the end of 2015

59%: Percentage of retail locations that will be EMV-compliant by the end of 2015.

78,800: Current number of EMV chip-activated merchant locations

40%: Percentage of US. debit cards that will be issued as EMV cards by the end of 2015

70%: Percentage of U.S. credit cards that will be issued as EMV cards by the end of 2015

86%: Percentage of financial institutions that plan on issuing EMV debit cards in the next two years

$3.50: Average cost for issuing a new EMV card

$500: Average cost of an EMV-compliant point-of-sale terminal

                           Sources: Javelin Research & Strategy, Aite Group, 2014 PULSE Debit Issuer Survey

EMV is a global standard for inter-operation of integrated circuit cards (IC cards or "chip cards") and IC card capable point of sale (POS) terminals and automated teller machines (ATMs), for authenticating credit and debit card transactions.

EMV is a joint effort initially conceived by Europay, MasterCard and Visa to ensure the security and global interoperability of chip-based payment cards. Europay International SA was absorbed into MasterCard in 2002. The standard is now defined and managed by the public corporation EMVCo LLC. JCB (formerly Japan Credit Bureau) joined the organization in December 2004, and American Express joined in February 2009. China UnionPay was announced as member in May 2013,[1] and Discover joined the corporation in September 2013.[2] The EMVCo members MasterCard, Visa, JCB, American Express, China UnionPay, and Discover have an equal 1/6 interest in the standards body.[3] IC card systems based on the EMV specification are being phased in across the world, under names such as "IC Credit" and "Chip and PIN".

The EMV standards define the interaction at the physical, electrical, data and application levels between IC cards and IC card processing devices for financial transactions. There are standards based on ISO/IEC 7816 for contact cards, and standards based on ISO/IEC 14443 for contactless cards (PayPass, PayWave, ExpressPay).

The first standard for payment cards was the Carte Bancaire M4 from Bull-CP8 deployed in France in 1986 followed by the B4B0' (compatible with the M4) deployed in 1989. Geldkarte in Germany also predates EMV. EMV was designed to allow cards and terminals to be backwardly compatible with these standards. France has since migrated all its card and terminal infrastructure to EMV.
The most widely known chip card implementations of EMV standard are:

• VSDC – Visa
• M/Chip – MasterCard
• AEIPS – American Express
• J Smart – JCB
• D-PAS – Discover/Diners Club International.

Visa and MasterCard have also developed standards for using EMV cards in devices to support card-not-present transactions over the telephone and Internet. MasterCard has the Chip Authentication Program (CAP) for secure e-commerce. Its implementation is known as EMV-CAP and supports a number of modes. Visa has the Dynamic Passcode Authentication (DPA) scheme, which is their implementation of CAP using different default values.
In February 2010, computer scientists from Cambridge University demonstrated that an implementation of EMV PIN entry is vulnerable to a man-in-the-middle attack; however, the way PINs are processed depends on the capabilities of the card and the terminal.

Boosts loyalty and repeat business
New equipment purchases open the door to adding emerging technologies such as two-way NFC to push targeted offers to consumers’ via smart phones which can then be redeemed at the point of sale in a secure manner
Providing added protection for your customers can drive improved satisfaction and help increase loyalty
Chip-enabled Payment Process
Using a smart, chip-based card to pay for an item requires a change in how the card is read at the point of sale. Consumers will need to adapt to a new behavior when conducting their payment transactions. Here’s how a consumer will conduct a chip-based transaction:
1. Consumer inserts their smart card into the new chip-enabled slot on the front of
a POS device like the FD35 or they wave it in front of the contactless icon.
2. Most chip cards will also have a magnetic stripe, so if a chip card is swiped like a traditional payment card on the POS device, the device will prompt the customer to process a chip-enabled transaction using the chip-based device. NOTE: If the card is inserted into the device, it must remain inserted in the POS device throughout transaction. The card should not be removed until the terminal prompts its removal. Removing the card too early will cancel the transaction.
3. The consumer will follow the prompts on the terminal’s screen, which may include entering a PIN for both debit and credit transactions.
4. Once the user is verified and the purchase is approved, a receipt is printed.
5. The card can then be removed when prompted. Associates will need to remind
consumers to take their card once the transaction is complete.
Chip-enabled cards will continue to have a magnetic stripe that enables them to work with non-chip reading terminals. For these transactions, the usual magnetic stripe transaction process applies.
The TransArmor Solution
Cardholder security is our first priority at First Data and smart card technology is just one of the many layers of security First Data offers. While EMV provides one layer of fraud protection, it does not protect or remove cardholder data from the payment process; it simply authenticates the card is valid, verifies funds are available and validates the user via a PIN number or signature.
The First Data® TransArmor® solution is a multi-layered security solution that
uses both encryption and tokenization technology to protect data in transit
and at rest pre- and post authorization. The TransArmor solution protects
against the theft or exposure of sensitive payment card data from the point of swipe through the storage in back-end systems. In addition, the TransArmor solution uses a card-based token that allows merchants to track consumers’ buying behaviors by payment card, which can be used in reporting, sales
trends, loyalty and marketing programs. The TransArmor solution combined with chip-based technologies is the perfect combination of data theft protection and fraud prevention technologies.
For more information, contact your Sales Representative 

                                                         1-800-676-4030
                                                                                                                                       
                                                                                                                                          Sources  1. EMVCo, LLC, “About EMV”, http://www.emvco.com/default.aspx       2. EMVCo, LLC, “About EMV”, http://www.emvco.com/about_emv.aspx