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EMV Compliance in 2022: Why Is It Important for Your Business

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Among the many recent shifts in how businesses take payments, EMV compliance stands out as one of the most consequential. Still, most companies have been slow to complete the transition despite the push toward compliance.


The deployment of EMV solutions is something to consider for your business if you want to avoid additional nuisances. Still, many shops may be waiting to observe the repercussions on the industry before changing their systems.

What is EMV?


EMV stands for “Europay, MasterCard, and Visa,” the three prominent corporations behind the technology. These standardized chip cards and EMV-compatible terminals for conducting monetary transactions.


EMV cards feature embedded microchips for storing information and authenticating transactions rather than a traditional magnetic stripe. To verify in-person purchases, users need to tap a PIN code input. Together with other advancements in the underlying technological infrastructure, this makes chip card technology so effective at lowering the incidence of card fraud.


Despite the growing threat of fraudulent transactions, numerous nations, including the United States, have yet to fully adopt EMV and switch from magnetic strips to chip cards. There is no requirement for shops to accept EMV cards, although failure to do so may result in costly chargebacks.

What makes EMV secure?


EMV chips save your payment information like a magnetic stripe when making a purchase. But chip cards have more storage space for data, and the microchip encrypts all of that data. To prevent identity theft, thieves cannot utilize data-reading devices and technologies to decipher the encrypted data. That can only be accomplished if the POS terminal at which the card is used can read and interact with the embedded microchip. How does this code function, exactly? Every time a card is used, it generates a new “token” (code).

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Payment tokenization refers to exchanging a potentially dangerous data point (such as a credit card number) for a safe, encrypted token (a token). Instead of the actual credit card number, this token is sent over the network. Payment tokenization was developed to reduce the potential dangers of conducting online financial transactions. That way, stores may offer a safe and streamlined digital checkout process without sacrificing safety.

EMV Payment Transactions and Their Classifications


With EMV technology, several tokens can be issued for usage with various user-enabled devices. Tokens are generated and can be utilized for in-app purchases, in-store purchases, and internet purchases for a few scenarios.


Using a PIN for Card Purchases


Chip-based cards are standard at most current POS systems and payment terminals. This method of processing payments is safer than others because customers are required to enter a PIN code to verify their transactions. There is less opportunity for fraud with EMV cards because they cannot be “swiped” or used without permission.


Payments Made Via Contactless Technology


EMV cards also allow for the increasingly popular contactless “tappable” payments. Contactless payment volumes have increased by 150% over the past two years and are expected to grow at a double-digit rate throughout the decade. Contactless payment use cases, including retail payments and public transportation ticket sales, are rising.


Card-Not-Present Payments


Cards are not physically presented during card-not-present (CNP) transactions. Mobile wallets, in-app, and online payments are all examples of NFC transactions. EMV development requires additional security measures like SMS Authentication, in-app validation, and push notifications to provide the highest level of safety.

When it comes to electronic payments, why are EMV solutions essential?


Compliance benefits include fewer fraudulent transactions, fewer chargebacks, and the option to accept mobile payments. EVM’s primary advantage lies in its ability to reduce fraud, though others have questioned whether this only shifts the focus of criminals.


Fraud Losses


EMV technology, as we’ve discussed, is excellent at preventing in-person fraud. Each card features secure chip technology that is notoriously challenging for counterfeiters to replicate. It’s difficult to use a stolen card without the correct PIN, even if the card itself has been stolen.


For this reason, using EMV technology has dramatically reduced the amount of in-person fraud. But, it is not everywhere. Even with EMV, cardholders and retailers are still vulnerable to fraud, especially as more and more sales are made online.


EMV solutions can:


  • Increase the difficulty for forgers to duplicate cardholder data.
  • Reduce the likelihood that your card may be stolen in person.
  • Secure all user information on terminals and servers.
  • Assist in the detection of counterfeit or lost cards.


EMV solutions cannot:


  • Reduce the likelihood of stolen credit card information being used fraudulently online.
  • Stop hackers from accessing your wifi and stealing your data.
  • Keep sensitive customer information safe in merchant databases from hackers.
  • Use a verified payment method when shopping online.


Reduction in chargebacks


In the age of e-commerce, where customers cannot physically examine a product to determine its quality or fit before making a purchase, chargebacks are an inevitable aspect of doing business. Storefront or online chargebacks are bad for business. A high number of chargebacks can make it challenging to switch merchant service providers, which can seriously impact your bottom line. If you run a brick-and-mortar business, protecting yourself from chargebacks is more feasible if you accept only EMV-compliant cards.


Accepting contactless payments


While contactless cards’ popularity has increased in other parts of the world, it has been slower to spread in the United States. On the other hand, the widespread use of chip cards in recent years has led to a meteoric rise in contactless payments across the United States. It was forecasted that mobile payment transactions would increase by 210 percent in 2016 and that by 2019, approximately 70 million people in the United States would be using mobile payment services. Considering these rising numbers, it’s possible that adopting EMV compliance technology and accepting contactless payments could benefit your company.



Businesses can reap many benefits by quickly transitioning to an EMV-compliant terminal. Due to the rising cost of fraud in the retail industry, action must be taken to address this issue. Doing so can increase profitability by minimizing chargebacks and lowering your exposure to fraud.


Kossi Adzo is the editor and author of He is software engineer. Innovation, Businesses and companies are his passion. He filled several patents in IT & Communication technologies. He manages the technical operations at

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