A tiny, brilliant technology fuels a global transition.
Chip cards are the same size and shape as traditional plastic payment
cards. But they are far more powerful. Each one contains a tiny
computer that makes transactions safer, faster and filled with vastly
more potential for both merchants and consumers.
During a face-to-face purchase, the chip card communicates with the
Point of Sale (POS) terminal. It can validate the cardholder’s identity
and record important transaction information. Consumers can make
purchases with a chip card using either a Personal Identification
Number (PIN) or a signature. PIN-based transactions offer advantages
such as enhanced security and speed.
MasterCard and other payment industry leaders have developed a set of
regulations for chip card transactions, known as the EMV standard. More
than 155 million cards and 3 million terminals that accept MasterCard
now comply with EMV worldwide. EMV-compliant POS terminals are designed
to accept every chip card produced to that standard, worldwide.
Aside from its benefits, chip adoption has little effect on merchant
operations. You retain the same acquirer relationship and the same
network connections. The biggest change is PIN authentication in
regions where signature is the longstanding authentication method.