Generations of EMV Chips

Swipe, dip and Tap are three generations of Payment card gestures.

💳Generation 1 → Magnetic Stripe = That black thing behind your card = Swipe
🏧Generation 2 → EMV Chip = That SIM card-looking thing in front of your card = Dip
💸Generation 3 → DI/ Duel Interface cards = That Wifi symbol on your card = Tap

Each generation has its own security methods and issues.

🤯Magnetic stripe will go away real soon and the future will be ‘No Cards’.
📲Just think about it, why do you need a payment card, unless your phone is not working?
🤓That’s a topic of some later discussion, but today let’s learn about EMV Chips.

🏦EMV stands for “Europay, MasterCard, and Visa”.
🏗️These three companies worked together to create the EMV standard for smart payment cards, POS terminals, and ATMs that can use integrated circuit (IC) cards or smart cards instead of traditional magnetic stripe cards.
🏢EMVCo currently manages this standard. Notable members of EMVCo include UnionPay, Visa, MasterCard, JCB, AMEX, and Discover.

💱EMV cards have a chip that stores and processes data.
📇Each payment has a unique code, making it hard for fraudsters to copy the card data. To use it, you need to enter a PIN or sign a receipt.
💰EMV cards can be used for debit, credit, contactless payment, mobile payment, tokens and more.

EMV Payment Flow ->
1. 🏧Insert Card — Put your chip-enabled payment card into the chip reader on the point-of-sale (POS) terminal.
2. 🔐Authenticate Card — The POS terminal reads the chip on the payment card and verifies it using cryptographic keys.
3. 🛡️Verify Identity — You need to enter a PIN or sign a receipt to confirm your identity.
4. 🎰Process Payment — The POS terminal sends the transaction details, including the amount and card information, to the payment processor for approval.
5. ✅Request Approval — The payment processor contacts the card issuer to approve or decline the transaction based on factors such as available credit.
6. 👍🏽Complete Transaction and Remove Card — If the transaction is approved, the POS terminal completes the transaction and gives you a receipt. If the transaction is declined, you’ll receive a notification.

EMV cards can help make everyday credit card transactions more secure. Purchase from merchants who use EMV readers and keep a close eye on your transaction history to maximize the security of your credit card account.