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.
$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.
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, and Discover joined the corporation in September 2013. The EMVCo members MasterCard, Visa, JCB, American Express, China UnionPay, and Discover have an equal 1/6 interest in the standards body. 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:
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.
Copyright © 2004-2017 Stellar Payment Systems. All Rights Reserved.The Clover Trademarks and log are owned by Clover Network, Inc. All other trademarks, service marks and trade names referenced in this material are the property of their respective owners. Stellar Payment Systems is a registered ISO of Wells Fargo Bank, N.A., Walnut Creek, CA. | EVO Payments | Sound Point Bank | American Express may require separate approval.