With the increase in credit card fraud, more and more people are starting to use microchip-enabled cards to help secure their personal data. EMV-enabled cards are the future of credit card security, and the use of chips in cards is on the rise in the US and around the world.
Better, safer technology
EMV is the latest technology to ensure secured transactions using credit or debit cards, and is fast becoming the global standard for all card payments. EMV has its name from the original developers, Europay, MasterCard and Visa, and the embedded chip stores. It is quickly replacing the old magnetic strip, which was subject to copying or duplicating in the past, and adds another highly secure level of fraud protection that is difficult to copy or duplicate. In conjunction with the required PIN to authorize the transaction, it is making it safer to use a card. American Express, Discover, JCB, MasterCard, UnionPay and Visa all use the EMV Standard microchip for cashless vending.
Increase in global usage
EMVCo is a private company – which is controlled by Visa, MasterCard, JCB, American Express, China UnionPay, and Discover equally – that manages the EMV standard. A report produced by EMVCo stated that, between July 2015 and June 2016, 42.4% of all global credit card transactions were EMV-compliant. This is an increase of 9.4% compared to the previous 12 months. The increase in global usage shows that more people are using the technology in regions where it has recently been introduced. EMVCo executive committee chair, Soumya Chakrabarty, said, “with this continued migration EMVCo expects these figures to increase in the coming year which could mean that global EMV transaction volumes would exceed half of all ‘card-present’ payments.”
US is “catching up” quickly
Despite being almost 10 years behind Europe in implementing this, the United States is now adopting the technology for the increased security it gives, and is starting to catch up. Since it took effect in October 2015, EMV card usage has increased from a meager 0.26% to 7.2% for EMVCo’s reporting period. Those figures are expected to increase drastically over the next 12-month period, as more Americans catch on to the idea of safer, more secure payment method and are finding that their old magnetic-strip cards are outdated, and less useful abroad. US retailers have been asked to switch over to EMV technology since October 1, 2015. However, they still have a long way to go to match Western Europe’s almost 100% usage.
EMV card payments are made by either inserting the card into a card reader at the point of sale or, with contactless cards, by swiping it near the terminal where it reads the card information using radio frequency identification (RFID) technology.
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