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. Luhn Algorithm

    An algorithm used to validate a credit card number.
  4. Roll Rate

    The percentage of credit card users who become increasingly delinquent ...
  5. Truncation

    The requirement mandated by the FTC for merchants to shorten ...
  6. Purchase Money Security Interest ...

    A security interest or claim on property that enables a lender ...
RELATED FAQS
  1. What is the difference between "closed end credit" and a "line of credit?"

    Depending on the need, an individual or business may take out a form of credit that is either open- or closed-ended. While ... Read Full Answer >>
  2. What is the best way to start to rebuild your credit after a bankruptcy?

    Bankruptcies can be devastating to your credit score. Even worse, a bankruptcy will be listed on your credit report for between ... Read Full Answer >>
  3. What were the primary financial crimes involved in the ZZZZ Best case?

    ZZZZ Best was a company started by Barry Jay Minkow that claimed to be a carpet cleaning business. In fact, it was a Ponzi ... Read Full Answer >>
  4. Can a creditor sue me for a delinquent account?

    If a credit card account becomes delinquent, the creditor can sue the debtor for the balance as soon as the delinquency occurs. ... Read Full Answer >>
  5. How do I transfer my credit card history from one country to another?

    It is currently not possible to transfer your credit history to another country if you relocate. The credit metrics used ... Read Full Answer >>
  6. What are some examples of simple interest loans?

    Two good examples of simple interest loans are simple interest car loans and the interest owed on lines of credit such as ... Read Full Answer >>
Related Articles
  1. Credit & Loans

    What You Need To Know About EMV Credit Cards

    Finally, the U.S. is beginning to move to EMV credit cards. Here's how they'll keep us safer and what they won't fix.
  2. Personal Finance

    How Seniors Can Fight Identity Theft

    Senior citizens are at a high risk of being victims of identity theft, and they are often easy targets for criminals.
  3. Credit & Loans

    How To Prevent Identity Theft While Traveling

    When traveling this holiday season, use these tips to protect yourself from identity theft while on the road.
  4. Personal Finance

    How To Protect Your Smartphone From Identity Theft

    A smartphone is an identity thief's dream come true because of all of the information it contains. How can you protect your smartphone data?
  5. Personal Finance

    Whose Fault Is Identity Theft?

    You've been so careful, so how did they get your information? Who is really to blame for your identity being stolen?
  6. Credit & Loans

    What To Do If Your Identity Is Stolen

    Having your identity stolen is a nightmare. If you are ever faced with the situation, use these steps to alleviate the problem.
  7. Personal Finance

    5 Overlooked Places Where Your Identity Can Be Stolen

    Identity theft affects many Americans, and are often caught off guard. These are 5 places thieves target.
  8. Credit & Loans

    Credit Card Tutorial

    Credit cards can be a useful tool if you know what you are getting into. Learn the risks, rules, history of credit cards.
  9. Credit & Loans

    American Express Cards: Centurion Vs. Platinum

    If you're offered a coveted black card from AmEx, should you accept it?
  10. Credit & Loans

    Credit Cards Offering The Most Airline Miles

    Besides one mile for every dollar spent on purchases, you can rack up thousands more – up to 50,000 – thanks to these cards' intro offers and bonus points.

You May Also Like

Hot Definitions
  1. Treasury Yield

    The return on investment, expressed as a percentage, on the debt obligations of the U.S. government. Treasuries are considered ...
  2. Bund

    A bond issued by Germany's federal government, or the German word for "bond." Bunds are the German equivalent of U.S. Treasury ...
  3. European Central Bank - ECB

    The central bank responsible for the monetary system of the European Union (EU) and the euro currency. The bank was formed ...
  4. Quantitative Easing

    An unconventional monetary policy in which a central bank purchases private sector financial assets in order to lower interest ...
  5. Current Account Deficit

    A measurement of a country’s trade in which the value of goods and services it imports exceeds the value of goods and services ...
  6. International Monetary Fund - IMF

    An international organization created for the purpose of: 1. Promoting global monetary and exchange stability. 2. Facilitating ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!