Again, EMV stands for EuroPay, MasterCard®, Visa®, the three entities that worked together to create worldwide standards for the chip card to ensure global interoperability. EMV is a payment method that combines a plastic card with integrated circuit chip (ICC). An EMV card uses the ICC to hold the account number and other sensitive data instead of using a magnetic stripe. The chip also contains logic for transaction processing and risk management. The goal with EMV is to significantly reduce the financial burden attributed to the use of lost, stolen, or counterfeit cards.
“On October 1, 2015, the first major push by the card brands for retailers’ adoption of this technology goes into effect. On that not-so-distant date, merchants and acquirers will then assume the burden associated with the fraudulent use of counterfeit, lost, or stolen cards. The retailers’ only means of eliminating that risk is by demonstrating and documenting compliance with EMV chip card standards.”