Why are EMV cards more secure?

You’ll see a small metallic square on the new EMV cards. That’s a computer chip, and it’s the difference in this new generation of credit and debit cards. Unlike magnetic stripe cards, when an EMV card is used for payment, the computer chip embedded in the card creates an unique transaction code that is not used again.

The magnetic stripes on the older style cards contain unchanging data. Whoever accesses that data gains access to the sensitive information necessary to make purchases. This makes traditional cards prime targets for counterfeiters and thieves, who then use it to gain cash from the card. Because the data is unchanging, it can be replicated multiple times, compounding the losses.

EMV technology will make it much harder for criminals to successfully profit from what they steal. Even if hackers steal the new chip data, the transaction numbers created are good for only that one instance and the card would be denied if they tried to reuse it.

EMV technology has successfully reduced credit card fraud in Europe where it is being used now. Experts expect to see it significantly reduce credit card fraud in the US as well.

Harbortouch America can help with EMV compliant card readers, free with any new merchant POS system account.

Aug 11, 2015

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