EMV credit cards help make retail shopping more secure. Each card comes with an embedded chip that assigns a unique transaction ID to every purchase. Customers must also either sign their name or enter a personal identification number (PIN) in order to successfully authorize each transaction.
However, these extra security features aren't really applicable when shopping online. With most e-purchases, anonymous customers simply provide their:
- 16-digit credit card numbers
- 4-digit expiration dates
- 3-digit CVV2 or CVC2 codes
Consequently, many online retailers have delayed investing in EMV technology until a truly unified payment system emerges — one that leverages EMV security features for mobile, retail and online transactions.
Even if EMV technology and online shopping aren't 100 percent compatible, all merchants should actively work to plug individual leaks in their payment systems. These steps might carry higher initial costs (e.g. new equipment and employee training), but these are investments that pay for themselves as credit card fraud declines.
Leveraging EMV Security for E-Commerce Shopping
Brick-and-mortar retail stores should invest in EMV terminals with all deliberate haste. And online retailers should explore the safest payment options available.
These steps should happen even in the absence of any unified EMV payment system.
Although not 100 percent unified, EMV payment options do exist in the online world. They haven't become truly mainstream yet, but the technology is already here:
- Mastercard offers a Chip Authenticated Program (CAP)
- Visa now offers Dynamic Passcode Authentication (DPA)
Many e-commerce stores throughout Europe have already begun using these two EMV security features with their own online customers. And they could soon become mandatory for e-stores in the Americas.
In the meantime, it's worth exploring whether CAP or DPA authentication options exist with your own bank, card issuer, or merchant account provider. By integrating these security features into your own payment network, you'll be able to reduce fraudulent losses and increase customer sales.
For more information about EMV credit cards and online shopping, use the free resources below:
- To learn about EMV credit card processing at BluePay, click here.
- To learn about online payment gateways at BluePay, click here.
- To speak with our support team today, click here.