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How does EMV help to prevent fraud?

During an EMV transaction the chip on the card creates a unique code that the card issuer authenticates before they approve or decline the transaction. This makes it difficult for fraudsters to copy and use the card’s data because the unique code won’t work for another transaction. Depending on the type of cardholder verification that the EMV card supports, the cardholder may need to provide their PIN or their signature.

How chip and PIN helps to prevent fraud

Card issuers use the PIN to authenticate the cardholder’s identity. This reduces the risk of fraudsters using the cardholder’s EMV card because only the cardholder should know their PIN.

How chip and signature helps to prevent fraud

By providing their signature, the cardholder authenticates that the EMV card is theirs. However, this is less secure than chip and PIN because a fraudster can forge the cardholder’s signature.

How the card issuer helps to prevent fraud for contactless transactions

Because there are less checks on the cardholder’s identity, the card issuer may limit the dollar amount that the cardholder can spend using contactless payments .

To increase the security of contactless payments, the card issuer may also apply a limit on the number of times the cardholder can use contactless payments. If the cardholder reaches their contactless payment limit, they have to insert their EMV card into your terminal and provide their PIN or signature.

Important: You are liable for any fraudulent transactions where a cardholder uses contactless payment.

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