What it Means, How it Works, Limitations [Video]

EMV® Chip started as a jointly developed global standard that allows interoperability between the cards with computer chips and terminals used by the largest financial services companies. Today, EMV is a technology toolbox that enables globally interoperable secure payment across face-to-face and remote environments.

The standard is now managed by EMVCo, a global technical body that facilitates worldwide interoperability and acceptance of secure payment transactions by managing and evolving the EMV Specifications and related testing processes.

POS terminals that meet EMV standards typically require the cardholder to use a personal identification number (PIN) rather than providing a signature, which adds an additional layer of security. EMV cards also contain an integrated circuit chip, which encodes every transaction differently. If a criminal intercepts data from a chip card’s transaction, the data cannot be reused to make another purchase.

Historically, credit and debit cards only used a magnetic strip to manage cardholder data. The cardholder …