This prevents stolen data from being fraudulently reused. Each time you make a purchase with your EMV chip card the embedded chip generates a unique transaction code. EMV chip cards store payment information in a secure chip rather than on a magnetic stripe.
Traditional mag‐stripe cards store static account information, leaving them more vulnerable to counterfeit and card fraud because of the transaction and account information being shared. Movement to NFC and Mobile Payment: The EMV chip card lays the groundwork for the adoption of the contactless card and mobile payment systems growth. mag‐stripe cardholders have encountered more acceptance issues when traveling abroad. Global Interoperability: As more countries have migrated to EMV chip card technology for their payment systems, U.S. EMV chip card technology offers protection against card skimming, cloning and card counterfeiting. where mag‐stripe technology is still being used.
With much of the world already using the chip card, fraudsters are moving their attention to the U.S. Security and Fraud Reduction: EMV chip cards are a more secure alternative to traditional magnetic stripe payment cards. This embedded chip is a type of small computer that contains information needed to use the card for payments and is protected by various security features. EMV is termed after its original developers: Europay, MasterCard®, and Visa® and refers to the global standard of debit and credit payment cards with chip technology.