According to a recent report, more merchants are installing EMV card readers to reduce liability to their businesses from fraudulent transactions. This is beneficial to the consumers because it increases the security of credit and debit transactions.
EMV stands for Europay, MasterCard, and Visa.
Experts call the protective efforts a “liability shift,” which instates policy that shields businesses from having to pay for their own losses in the case of fraudulent transactions. Nearly 67% more American citizens were affected by financial data breaches in 2012 than in 2010.
Much of the insecurity of credit and debit cards without an EMV chip is in the swipe strip on the back of the card. New cards with the EMV chip will eliminate the swipe process, increasing their security.
“The chips and the terminal are having a conversation, they’re exchanging data and creating new data,” explains Carolyn Balfany, head of the EMV.
Eric Dunn, head of Intuit’s payments, describes it as “an encrypted handshake between the card and the terminal,”
You may have already seen these kinds of EMV solutions, in the form of touchless cards and services like Apple Pay. (If you’re one of the eight out of every ten people with a cell phone.)
While EMV chips can’t completely eliminate the risk of fraudulent transactions, it’s a step in the right direction. However, it will be at least a few years before your usual magstripe card expires, and Dunn says that it’s nothing that consumers will have to worry about any time soon.