What does EMV transaction authorization mean?

EMV is a global standard for debit and credit cards based on chip technology in which cardholder verification methods are used in addition to traditional magnetic stripe or simple promiscuous mode data. This technology reduces the likelihood of fraud occurring during an electronic payment by requiring the presence of both a physical authentication token (such as a microchip) and static data (such as the card number). As part of implementation of this standard, VISA and MasterCard required U.S. issuers to ensure all new payment cards issued would include a chip capable of dynamic authentication in order to be used for EMV transactions anywhere in the world.

What are the primary benefits of an EMV transaction?

EMV transaction technology reduces the risk of counterfeit fraud at chip-enabled merchants because it uses encryption technology. This means even if the card information is stolen, it cannot be used for fraudulent purposes. The encryption also ensures that information stored on a card's magnetic stripe cannot be used to make unauthorized purchases. EMV transaction authentication is performed each time a transaction is conducted, ensuring each payment is unique and more difficult to counterfeit. For cardholders at chip-enabled merchants, transactions are faster because the cards require less data entry. This means quicker checkouts at store registers. EMV also makes it harder for criminals to create counterfeit copies of chip cards due to the dynamic authentication process.

What does it mean when a merchant is "EMV Enabled?"

It means the merchant is capable of authorizing credit and debit card transactions using an EMV-enabled payment terminal. This also means that a card has a chip installed on it that enables dynamic authentication for each purchase made.

What does the process look like when conducting an EMV transaction?

When a customer makes a purchase that requires authorization, the transaction terminal will prompt you for your payment card. You will insert the chip end of your card into the terminal, and then follow the prompts on screen to enter information needed to complete the transaction.

What happens if my credit/debit card does not have an EMV chip?

If your card is not enabled with a chip, simply swipe the magnetic stripe or use contactless payment to complete the transaction. You will still be protected from unauthorized charges by MasterCard's zero liability policy and you can continue using your card as usual.

What if the merchant terminal is not set up to accept EMV transactions?

If you have a card with an EMV chip, but the terminal is not set up for EMV transactions, contact your financial institution or card issuer. They will be able to advise whether you can use your magnetic stripe instead of a chip at that point-of-sale terminal.

What if I don't want my credit/debit card to be an EMV chip card?

EMV chip technology is just one of several tools that can help reduce fraud and protect yourself from unauthorized charges. If you do not want a card with the chip, simply decline when your financial institution or card issuer asks if you would like a chip enabled credit/debit card. This is a decision that should be made in collaboration with your financial institution or card issuer.

What if my credit/debit card has an EMV chip, but I do not see a slot to insert it?

If you have a chip-enabled plastic card, the terminal will either prompt for swipe or insert of the card. If you do not see an insert prompt on the terminal, contact your financial institution or card issuer. They will be able to advise whether you can use your magnetic stripe instead of a chip at that point-of-sale terminal.