What You Need to Know About EMV Technology …

EMV Technology

What is EMV?

Named after its original developers, Europay, MasterCard and VISA, EMV is a set of specifications for chip cards and the devices — such as point of sale payment terminals — that are used to accept chip card payments.

EMV chip technology is proven to significantly reduce card fraud resulting from counterfeit, lost and stolen cards.

How does EMV work to secure data?

When using magnetic stripe cards, data is exposed, being decrypted and encrypted several times through the transaction.

EMV uses point-to-point encryption (P2Pe) to help mitigate risk. P2Pe encrypts data at the terminal, immediately guarding against financial information being seen. Data then passes through the same stops as the standard methods (POS terminal, retail server, gateway server) but is never decrypted, and therefore never exposed. Each transaction is assigned a one-time-use token, which is destroyed once the transaction is complete.

P2Pe also enables the increased scrutiny of a single process, instead of spreading it over multiple points of the transaction.

How do chip-and-pin cards work?

When consumers with chip cards make a purchase, they won't swipe their card as they've done with a magnetic stripe card. Instead, they'll insert the chip card into an EMV terminal that is set up to read chip cards. PIN entry may be required depending on the type of transaction. That means all merchants will need EMV terminals to do business, otherwise they lose out on potential sales from customers using chip cards, and face increased risk in liability and costs associated with counterfeiting and fraud.

  • Blue credit card with emv chip
  • What this means for merchants:

    Starting October 2015, all U.S. merchants became subject to new EMV standards, which reflects a shift from magnetic stripe payment cards to chip cards. This shift is also known as the "merchant liability shift".

    Basically, what you need to know is this: the party that has the lesser technology bears the liability.

    For example, if a merchant is still using an old system, they can still run a transaction with a swipe and a signature. But they will be liable for any fraudulent transactions that happen when a chip card is used for in-store transactions. And the same goes the other way — if the merchant has a chip-enabled terminal, but the bank hasn't issued a chip-and-pin card to the customer, the bank would be liable.

  • What merchants need to know:

    Because more and more consumers will be using chip cards, merchants will have to have a device that can read chip cards.

    But that's not the only reason they should have an EMV terminal. Using an EMV terminal dramatically reduces PCI scope and protects data end to end. Credit card information never passes through the software. Instead it's encrypted at the terminal, immediately guarding against financial information being seen.

  • What consumers need to know:

    Data on a traditional magnetic stripe card is static — making it easy for card numbers to be skimmed and the production of counterfeit cards to be made.

    The built-in cryptography in an EMV chip card, on the other hand, makes it nearly impossible to create a counterfeit card. On top of that, the chip in an EMV chip card generates a UNIQUE one-time code every time the card is used — so if the data is stolen, it’s unable to be used. EMV chip card technology is a significant step forward in helping to make in-store, card-present transactions more secure.

How is Constellation Payments addressing EMV?

We've developed a simple, integrated terminal solution that includes a set of feature-rich, EMV-compatible terminals provided by one of the world's leading suppliers of terminals, Ingenico. All terminals within this set deliver proven industry-leading performance and flexibility. See our EMV terminal set here.

The second piece of our integration solution includes a simple software development kit. We've done the heavy lifting by certifying all terminals, transactions and functionality with key processors.

What does this mean for Channel Partners? You won’t have to go through the EMV certification process alone or certify your pathway on your own. Our simple software development kit makes integrating our EMV terminal solution with any platform quick and smooth.

To learn more, call 267.287.1157 or send an email to integration@csipay.com.