How EMV Chip Cards Work
New technology is coming to your debit and credit cards. Financial institutions like First Farmers State Bank are embracing EMV standards, which can help reduce fraud and keep your accounts more secure. So when your next debit card comes in the mail, it may have an EMV chip embedded in it. Here’s a closer look at how these cards work. EMV cards 101
EMV cards are named after the companies that developed the enhanced technology, Europay, MasterCard and Visa. The cards generally have a small metallic-colored square on the front, embedded with a computer chip with the card’s financial information on it. The chip encrypts your information and creates security codes that change with each transaction.
Merchants with upgraded card readers are able to read the information on these cards and securely verify each transaction. According to the nonprofit Smart Card Alliance, over 600 million EMV cards will be sent to U.S. consumers
by year’s end. Many of these cards will have both EMV and magnetic stripe technology, but EMV technology is fast becoming the standard. How EMV cards benefit you