Is it time for EMV in the U.S.?

In order to consider EMV for the United States, first it is important to understand what it is and how it works.

EMV is an international standard specifying how smart card chips can replace the magnetic stripe on bank cards in payment transactions. The standard also calls them integrated circuit chip cards, a common term that means the same thing as smart cards.

EMV stands for the organizations that developed the standard – Europay, MasterCard and Visa. After the development of the standard, Europay became a part of MasterCard, while other card issuers such as JCB and American Express have begun supporting it. EMVCo, an organization jointly owned by American Express, JCB, MasterCard and Visa, now manages the EMV standard.

Most countries implementing smart bank cards require the use of a Personal Identification Number (PIN) in each transaction, which is why “chip and PIN” is often used to refer to EMV implementation programs.