"Around the world, EMV or chip cards are the standard for secure point-of-sale (POS) transactions"


1. What is EMV?

EMV is an open-standard set of specifications that ensures functionality between smart chip cards and payment terminals. EMV originated as a joint effort among EuroPay, MasterCard and Visa to improve payment safety through better card security and improved standards.

2. Is EMV mandated?

No, there is no mandate for merchant to implement EMV. Generally liability is going to shift to the party using the least secure technology.

3. Why EMV?

The primary benefit of using an EMV card is the prevention of counterfeit card-present fraud. By installing a chip-activated terminal, you are protecting your business from in-store counterfeit fraud and EMV liability shift.

4. What makes EMV transactions secure?

The chip in an EMV card protects individual transactions by adding a secret number only the card issuer know, which verifies that the transaction is legitimate through an EMV compatible POS device. Cardholder Verification Method validates the cardholder as the legitimate owner of the card, using verification parameters set up by the issuer.

5. What is EMV Liability Shift?

Beginning in October 2015, certain US payment networks independently plan to implement fraud liability shifts that will impact transactions from a counterfeit card created from the magnetic stripe on a chip card and/or lost/stolen card transactions.

6. Is EMV protection against all chargebacks?

No, chip liability shift is for card present counterfeit & lost/stolen cards only.

7. Is there any chargeback reason code for EMV liability shift?

Yes, issuer may use this chargeback message reason code 4870/4871 for MasterCard & 62 for Visa. However, the chip liability shift chargeback may come as ‘Account Number Not on File’ or ‘No Cardholder Authorization’.

8. What if the terminal cannot read the chip?

If the chip-reading device cannot read the chip on the card, you should follow “Fallback” acceptance procedures. In the event that a chip card or chip reader is not functioning and the physical magnetic-stripe of the card is read, the terminal will read the service code and prompt the merchant to read the card as chip card.

9. Is EMV working for Card Not Present(CNP) transactions?

No, currently the EMV standard exists solely for the card-present, face to face environment.

10. What is the solution for CNP?

Tokenization with card manager replaces card data with a unique ID to help protect data at rest and when stored. CDS offers MO/TO & e-commerce merchants ‘Converge’ to keep you secured from fraud and if you want more details, please call us at 1-800-371-5109.

11. Is there a difference between chip-PIN and chip-signature transactions?

PIN and signature are two types of cardholder verification methods(CVMs) that are supported by the EMV standard, and an issuer has a choice of which CVMs it will allow its chip cards to be processed with, depending on the issuer’s appetite for risk.

12. Are Chip & PIN cards all debit cards?

No, PIN is security function for all EMV cards regardless of ‘Credit’ or ‘Debit’ that issuers are adopting to enhance security around cardholder authentication.

13. What is the difference between Online Pin and Offline Pin?

Online PIN is encrypted by the pinpad and sent online to the issuer host for validation. Offline PIN is sent to and validated by the chip; Offline PIN is never sent to the host - only the result is passed.

14. Can the ‘CREDIT’ & ‘DEBIT’ buttons identify what type of card?

No, the pressing of ‘Credit’ or ‘Debit’ did not dictate the kind of card. In future application release the ‘Credit’ or ‘Debit’ choice will generally not be available.

15. Is the magnetic stripe gone?

No, first, EMV cards that are being issued still have a magnetic stripe so that they can be used at merchants that have not installed EMV-enabled terminals. Second, it will be years before all cardholders have and EMV card, so most merchants will have hybrid terminals that accept EMV and magnetic stripe cards.

16. Does EMV give me better interchange rates or dispute rights?

No, there have not been any changes to published rates by any of the major networks specifically for EMV transactions. Provided neither party to a transaction is EMV non-compliant, there have been no changes introduced to dispute rights, either.

17. Is PCI DSS compliance still necessary?

Yes, PCI DSS examines the payment environment and evaluate how your business processes, transmits or even stores cardholder data. PCI DSS compliance will remain a requirement.

18. As long as one device in a store is EMV capable, will the merchant not be affected by the liability shift?

Any device that accepts a payment card should be updated for EMV. The liability shift is on a transactional basis not on a merchant level basis.

19. How to use EMV terminal

① Instead of swiping, you’ll insert the card into the terminal, chip first, face up!
② The card must remain in the terminal during the entire transaction.
③ Either sign the receipt or enter your PIN to complete the transaction.
④ When the purchase is complete, remember to take your card with you.

20. Is EMV related to NFC?
Yes, NFC is wirelss form of EMV. Contactless payments, which employ near field communication(NFC) in transferring data from a payment vehicle’s(phone or chip card) secure element to a POS reader, are currently supported by “Dual Interface” cards being released by issuing banks. NFC and EMV specifications use the same ISO standards in communication between devices and terminals.