The benefits of adopting EMV chip technology

3.12.2013 Simon Bradley
The need for tighter security measure to curb ATM fraud is paramount. This is done to meet the needs of better enhancing service to banks customers while offering maximum protection for the funds held in their accounts. This is being enhanced through adoption of EMV which is a globally acceptable card which can be used for credit and debit card transactions.

The main advantage of using the EMV card is its improved security capability which prevents incidences of fraud and its multi user capability. The multi user capability allows the card to hold application for both debit and credit facilities. EMV cards require the holder to use a personalized Personal Identification Number (PIN) unlike the chipset card which requires the user’s signature for identification.

EMV cards are also allowed for use in online applications as well as offline applications. This means that the card holder can make transactions online using the card unlike the traditional chipset ATMs which allows for use only at dispenser machines. They are also valid for use at points of sale where buyers are allowed to use the cards to pay for goods and services at selected outlets. The amount involved in the transaction is automatically entered into the card holder’s bank account.

Whereas chipset cards can be duplicated and used easily, this is not the case with EMV cards. They are enhanced in a way which makes it difficult for fraudsters to use a duplicated card. It is also enhanced with a blocking hardware for inconsistent and incorrect pin entries. Despite this research has indicated that the cards can be hacked by entering a series of numbers for PIN identification a fact that has been refuted by the card manufacturers.

Using EMV cards is now considered the way forward for banks. This is regard to improving security and curbing cases of fraud. It is also ideal for customers who are equipped with a wider field on which to carry out their transactions using the cards.

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