EMV

AAA

DEFINITION of 'EMV'

A standard relating to integrated circuit cards, point-of-sale terminals and automated teller machines, set by Europay, MasterCard and Visa (EMV). EMV is a jointly developed global standard designed to allow interoperability between the cards and terminals used by the largest financial services companies.

INVESTOPEDIA EXPLAINS 'EMV'

Terminals that meet EMV standards typically require the card holder to use a PIN number rather than only 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.

The EMV standard covers the physical aspects of cards and terminals, as well as technical capabilities and data management. It applies to cards that require swiping (called contact cards) and to cards that do not (contactless cards), as well as to new standards being developed for e-commerce and online transactions.

Historically, credit and debit cards only used a magnetic strip to manage cardholder data. The cardholder would then sign a receipt at purchase. This system did not provide a high level of security, as a signature can be forged and the magnetic strip has proved relatively easy to hack – revealing the cardholder's private information to criminals.

 

RELATED TERMS
  1. Prepaid Credit Card

    A card issued by a financial institution that is preloaded with ...
  2. Credit Card

    A card issued by a financial company giving the holder an option ...
  3. Credit Card Authorized User

    Definition of an authorized user of a credit card.
  4. Integrated Circuit Card

    A card that has an embedded circuit, such as a computer chip. ...
  5. Gray Charges

    Fees consumers pay via credit card or debit card for unwanted ...
  6. Credit Card Teaser Rate

    A lower-than-normal interest rate that a credit card company ...
Related Articles
  1. What You Need To Know About EMV Credit ...
    Credit & Loans

    What You Need To Know About EMV Credit ...

  2. How Seniors Can Fight Identity Theft
    Personal Finance

    How Seniors Can Fight Identity Theft

  3. How To Prevent Identity Theft While ...
    Credit & Loans

    How To Prevent Identity Theft While ...

  4. How To Protect Your Smartphone From ...
    Personal Finance

    How To Protect Your Smartphone From ...

comments powered by Disqus
Hot Definitions
  1. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  2. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  3. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  4. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  5. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  6. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
Trading Center