EMV may decrease card-present fraud in stores, but it may cause hackers to resort to online fraud. How will EMV help online retailers protect their e-commerce sites?

 

EMV (Europay MasterCard Visa) chip cards are the next step in credit and debit card technology. According to Monetate , EMV will be implemented nationwide and the liability will shift to whichever party in the transaction process is least compliant.

 

EMV is going to change the payments industry in aspects of payment security and the way you pay at the point-of-sale. For instance, EMV chip technology will lessen the ability of hackers to steal credit card data from card-present transactions in stores. Cards based on EMV obtain an embedded microprocessor that will contain your credit card data instead of the magnetic stripe that has typically held your data. EMV is playing a huge role in payment security; in the bigger picture, this technology is essential to the multi-layered way of operating. The additional components that this operation consists of are tokenization, fraud detection networks and dynamic authentication.

 

Now the question is how will EMV affect e-commerce shopping security?

 

According to BluePay EMV payments are in existence within the e-commerce world but they have not surfaced fully yet. The technology is set into two different types in relation to Visa and MasterCard. BluePay recognized that the technology that Visa offers is called “dynamic passcode authentication” (DPA) and the technology that MasterCard offers is called “chip authenticated program” (CAP).

 

In Europe, many e-commerce stores have already adopted both of these EMV security technologies with their own online customers. These technologies are soon to be relevant in the United States with EMV around the corner.

 

If banks, card issuers, retailers or merchants adopt these two authentication technologies then it will reduce fraudulent losses online and increase e-commerce sales. These authentication technologies are the solution to fraud within the e-commerce world.

 

According to Monetate earlier this year, Visa worked alongside Secure Key and announced a series of Canadian EMV trials. In these trials, consumers were given a small card reader that plugged into a USB port on a PC or laptop. This small card reader established a completely secure link to Visa. The authentication process automatically filled the payment screen with the cardholder’s data using information held on file with Visa. This method could potentially be the future of e-commerce payments.

 

Though it is too early to determine the potential it has, it will be interesting to see how it unfolds out onto the e-commerce market in the US. This discovery could potentially be in a place where e-commerce transactions are equivalent to EMV point-of-sale transactions in security.