What is EMV?
EMV stands for EuroPay, MasterCard and Visa and is named after its original developers. The objective of EMV is to ensure Global Unification of secure card payments. In the 15 years since its inception, EMV has progressed from basic chip card technology to EMV contactless to Tokenization thereby strengthening the security of credit cards and e-commerce transactions.
Also known as Chip cards, these cards are embedded with a micro-computer chip that stores and protects cardholder data. This new technology was created to help protect consumers and merchants from card-related fraud which ultimately may lead to costly chargebacks for the merchant. Credit card theft is on the rise and EMV smart chips enable a more vigorous cardholder verification to protect against counterfeiting or lost/stolen cards.
While the final implementation is scheduled for October 2015, this is when liability shifts from issuers to acquirers to merchants. There are still many matters that must be addressed, including chip production and EMV enabled software cost, operating system updates, consumer education efforts and/or new equipment purchases for merchants. One thing is sure, merchants not in compliance can expect to bear the cost if they have not integrated to the EMV system.