EMV

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.

BREAKING DOWN '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. Transferable Points Programs (UAL)

    With transferable points programs, customers earn points by using ...
  4. Luhn Algorithm

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

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

    The requirement mandated by the FTC for merchants to shorten ...
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

    10 Reasons To Use Your Credit Card

    There are several benefits to paying with credit instead of debit, if you use a credit card responsibly.
  10. Credit & Loans

    5 Extreme Ways To Raise Your Credit Score

    Desperate to rebuild your credit score because you can’t obtain a loan with a decent interest rate? Here are some extreme options to try.
RELATED FAQS
  1. How can you pay your Walmart credit card?

    Holders of Walmart credit cards can make payments on their balances due by mail, online or at Walmart and Sam's Club stores. ... Read Full Answer >>
  2. Is Apple Pay safe and free?

    Apple Pay is a mobile payment system created by Apple to reduce the number of times shoppers and buyers have to pay for goods ... Read Full Answer >>
  3. Can you use your Walmart credit card at Sam's Club?

    Consumers can use their Walmart credit cards to shop at Sam's Club. However, they cannot use their Walmart credit cards when ... Read Full Answer >>
  4. How can you cancel your Walmart credit card?

    Walmart offers two types of credit cards: the Walmart MasterCard and the Walmart credit card. How to Close Your Walmart Credit ... Read Full Answer >>
  5. Does the Walmart credit card have an annual fee?

    The Walmart credit card does not charge annual fees to its cardholders. It does, however, have other fees associated with ... Read Full Answer >>
  6. How do NetSpend cards work?

    NetSpend prepaid MasterCard and Visa cards are popular prepaid debit cards requiring no minimum balance and no credit check. ... Read Full Answer >>
Hot Definitions
  1. Flight To Quality

    The action of investors moving their capital away from riskier investments to the safest possible investment vehicles. This ...
  2. Discouraged Worker

    A person who is eligible for employment and is able to work, but is currently unemployed and has not attempted to find employment ...
  3. Ponzimonium

    After Bernard Madoff's $65 billion Ponzi scheme was revealed, many new (smaller-scale) Ponzi schemers became exposed. Ponzimonium ...
  4. Quarterly Earnings Report

    A quarterly filing made by public companies to report their performance. Included in earnings reports are items such as net ...
  5. Dark Pool Liquidity

    The trading volume created by institutional orders that are unavailable to the public. The bulk of dark pool liquidity is ...
Trading Center