EMV Chip Enabled Card in India
In India, now you require an EMV chip and PIN enabled debit or credit card to make payment to foreign either for the business purpose, or to send money to your relatives. EMV Chip enabled Card makes your card payment secure .
EMV Stands for Europay, MasterCard, and Visa.To securing the Card payment transaction RBI (Reserve Bank of India) has made EMV Card mandatory for the international use of debit & credit card. Now, all the new debit and credit cards to be issued only for domestic usage unless international use is specified by the customer and active MagStripe international cards issued by banks should have threshold limit for international usage.
EMV refers to payment chip cards that contain an embedded microprocessor that provides strong security features and other capacities not possible with magnetic stripe cards.EMV Chip cards are safer than magnetic stripe cards. As magnetic stripe card can be cloned whereas chip card contains a microprocessor chip that uses encryption to prevent its contents from being duplicated.
Benefits of EMV Chip Card
- It provides added security against certain types of fraud such as counterfeit , lost and stolen .
- A transaction-unique digital seal or signature in the chip proves its authenticity in an offline environment also and prevents criminals from using fraudulent payment cards.
- It is used for secure online payment transactions through a transaction-unique online cryptogram and protect cardholders, merchants and issuers against fraud
- Unlike magnetic stripe cards, EMV Cards Store more information.
How are Cardholders Verified with EMV?
EMV supports four CVMs and depending on payment brand rules and issuer preference, this chip cards are personalized with one or more CVMs in order to be accepted in more and more locations:
- Online PIN verification : In this method PIN is encrypted and verified online by the card issuer
- Offline PIN verification
- Signature verification, where the cardholder signature on the receipt is match up to the signature on the back of the card.
- No CVM, where none of the above is used and No CVM is used for low value transactions or for transactions at unattended POS locations
How are Transactions Authorized with EMV?
- In an online EMV transaction for the authorization, transaction information is sent to the issuer, along with a transaction-specific cryptogram, and the issuer either authorizes or declines the transaction in real time.
- In an offline EMV transaction, the card and terminal communicate and use issuer-defined risk parameters that are set in the card to determine whether the transaction can be authorized.
Most EMV transactions are now authorized online due to development of telecommunication worldwide.