ATMmarketplace.com SPECIAL REPORT Mobility and the Integration of Banking Channels How Consumers Will Demand to Bank in the Next Five Years
Story continues below...
WHAT IS EMV? EMV is a standard for the interoperation of smart or chip cards and POS terminals and ATMs. EMV comes from the initial letters of Europay, MasterCard and Visa, the three companies that developed the standard. Europay International SA was absorbed into Mastercard in 2002. And JCB, formerly the Japan Credit Bureau, joined the organization in December 2004. EMV financial transactions are widely accepted within the industry as being more secure against fraud than traditional magnetic-stripe cards. EMV cards use encryption algorithms such as DES, Triple-DES, RSA and SHA to provide authenticaÂ¬tion of the card to the processing terminal and the processing center. The increased protection from fraud has allowed financial institutions and credit-card issuers to push through a "liability shift" — now making merchants liable for any fraud that results from transactions that are not EMV capable.