EMV which stands for europay mastercard, visa is a technology that can enhance the security of credit card transactions. EMV credit cards were introduced into Canada in 2008 with the hope of reducing card present fraud in retail stores in Canada. After 8 years, it is now very common to find a retail store with a payment processing system that can accept EMV chip card. Most of the time, you must provide the cashier with your credit card and he will insert it into the payment processing terminal to read it. If your credit card is valid, your shopping expenses will be charged on the card. The payment processor will produce a receipt which you are required to sign before your credit card will be returned to you.
Statistic shows that credit card fraud has reduced by 68.37% while debit card fraud has reduced by 89.49% after the introduction of EMV credit card in Canada. In 2008, the card present fraud for debit card is $104,500,000 and the card present fraud for credit card is $162,239,525. In 2015, the card present fraud for debit card has drop to $16,200,000 and the card present fraud for credit card is $51,315,783. The decline in the card present fraud is due to the fact that it is difficult for the criminals to perform EMV duplication. EMV chip card has been proven to enhance security in many countries.
Many merchants in Canada had decided to get their payment processing hardware updated. However, it didn’t take a single year for all merchants to update their payment processing system in order to meet with the minimum requirement of the EMV technology. It took at least a few years for all merchants to upgrade the credit card transaction terminals. Every financial institution has their own schedules to release chip cards. The cost for upgrading the terminal is about two hundred dollars. The new payment processing hardware has the capability of processing magnetic stripe swipe cards.
There are several types of emv chip cards including EMV chip and pin, EMV chip and signature and EMV card that features magnetic strip. The type of EMV card that you are being issued depend on the bank or credit card company. EMV chip and pin features a unique transaction ID that you have to key in after inserting the card in a payment terminal. EMV chip and signature requires you to insert the card into a terminal and putting down your signature on a receipt.
In traditional magnetic strip card, it is swiped through a payment terminal in order for it to be used for paying your shopping expenses. The magnetic strip in traditional credit card can easily be replicated so it is not safe. On the other hand, there is no chance for the unique transaction ID of the EMV chip credit card to be replicated.
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