The way customers are paying is changing. In the US, consumers have traditionally used cards with a simple swipe. Unfortunately, the magnetic strip cards are susceptible to credit card fraud. The EMV card technology has been used in Europe for years. It is the more secure way to pay because it uses a “smart chip” which is capable of much more sophisticated authentication than the magnetic strip cards. Essentially, there is a fully operating computer system embedded in every EMV card. This chip is tamper-proof, making the card nearly impossible to clone.
Merchants need to upgrade POS terminals and software to process EMV payments by October 2015. The good news is that EMV is going to bring some perks that we haven’t seen before. Most importantly, EMV enabled POS terminals provide protection against counterfeit card fraud.