Preparing for EMV
Europay, MasterCard and Visa is traditionally referred to as Chip and PIN implementations in Europe and around the world. This system requires consumers to enter PINs with every transaction, but that may change when it comes to the U.S. because of the payment infrastructure and consumer expectations.
As with mag-stripe and contactless payments, EMV can support multiple cardholder verification methods, including signatures and PINs. These are set by the card issuer and can vary based on the size of the transaction.
With EMV, the following verification methods will be available:
- Online PIN: This is consistent with current debit transactions; a consumer enters a PIN that’s then validated by the issuer. With EMV, this will also apply to credit transactions, so consumers and businesses may need to be trained on the change.
- Offline PIN: Once again this could be for credit or debit transactions with the code being entered on a PIN pad, but the PIN isn’t sent as part of the transaction. Instead, it’s matched locally to a value stored on the chip.
- Signature: The current process would stay the same, with consumers signing receipts or signature capture devices.
- No verification: This is also the same as the current process for mag-stripes. Certain low-risk merchant verticals and low-value transactions don’t require any verification.
These methods will be the same whether the EMV card is presented in a contact or contactless manner, but the issuer may set different CVMs based on how the consumer uses it. Acquirers, POS providers, merchants, card brands, issuers and groups like the EMV Migration Forum all have to work together to streamline the process and educate consumers on the change.
It’s important that businesses understand the complexities and form factors involved with EMV. This is the first step towards effective implementation, and ultimately reducing fraud at the point of purchase.