Secure Payments with EMV Technology: Everything You Need to Know
In today’s digital age, businesses and customers are looking for a reliable and secure payment solution that can help prevent data breaches. As such, EMV technology has introduced various transaction types that involve different levels of cardholder verification, making it a versatile payment option with a significant impact on the roles of merchants and issuers. In this beginner’s guide, we will explore the Four Corners Model and the ways EMV technology is transforming payment security.
Understanding The Four Corners Model
The Four Corners Model, also known as the Four Party Scheme, is a new standard typically used in almost all card payment systems across the globe. The model consists of four components: the cardholder, the merchant, the issuer, and the acquirer. A merchant connects to the acquirer, which then connects to the cardholder’s card issuer through a scheme. Between the merchant and the acquirer, there is always a third-party serving as a gateway or switch. While the model may seem relatively simple, it involves several flows between the four components, beginning when a customer makes an online payment with an EMV payment card.
Benefits of EMV Payment Solutions
EMV payment solutions offer benefits that help businesses streamline their payment processing and improve customer experience. Some benefits include:
1. Protecting Your Account: EMV chip cards add security features that protect your account against unauthorized use without any liability.
2. One-Time Code for Transactions: EMV tokenization provides a one-time code for a mobile transaction, making it highly secure.
3. Payment Tokens for Multiple Devices: EMV technology allows customers to issue payment tokens for various devices, including wearable devices and mobile wallets, making it highly versatile.
4. EMV Tokens for Card-Present and Card-No-Present Transactions: EMV tokens can be used for card-present and card-no-present transactions, making it easier for customers to make payments wherever they are.
EMV Payment Security
EMV technology is transforming digital payment transactions by improving payment security for all stakeholders. The technology affects customers, merchants, issuers, and acquirers in different ways.
1. Cardholder and EMV Security
EMV technology ensures the safety of the cardholders by using biometric authentication for cardholder identification, getting a one-time password for mobile transactions, and using multiple-factor authentication for card-not-present (CNP) payments.
2. Merchants and EMV Security
While merchants have no real cryptographic protection, EMV technology offers three different offline authentication schemes for data authentication: Combined Data Authentication (CDA), Dynamic Data Authentication (DDA), and Static Data Authentication (SDA). Merchants can benefit significantly from EMV technology, which protects payments from fraud and unauthorized use.
3. Issuer and EMV Security
EMV technology’s cryptogram verification mechanism ensures the safety of issuers. Issuers can access the payment card and modify it anytime, block that card remotely if misused, and use anti-cloning technology to prevent card cloning.
4. Acquirer and EMV Security
Acquirers must deal with several security risks associated with transaction laundering while processing transactions for merchants. EMV technology can help acquirers predict potential risks and address them effectively by implementing chargeback management, card association protection systems, and third-party anti-fraud systems.
Conclusion
With digital payment systems becoming more prevalent than ever, the Four Corners Model is a new standard that helps understand the pivotal role of merchants and issuers in digital payment processing. EMV payment solutions aim to secure the Four Party Scheme and streamline the overall payment processing, making it highly secure for all stakeholders. Partnerships with EMV experts like Edvantis can improve payment security and prevent data breaches in the current digital age. As businesses and customers increasingly look for secure and reliable payment solutions, EMV technology is transforming the payment industry into a safer and more reliable space.
