Monthly Archives: September 2014

More important and useful than Apple Pay?

Now that Apple has everyone’s attention on mobile payments with Apple Pay, perhaps you would like to know what your friends at Visa are doing regarding this technology. (Or, on the other hand, you can let us worry about this.)

Visa Token Service powers the most innovative payment options

Now you can offer consumers a broad range of simple digital payment options, while protecting their sensitive information from fraud. Whether you want to enable mobile payments with Apple Pay or Android devices, create a frictionless e-commerce experience with Visa Checkout, or securely maintain cards on file, Visa Token Service provides the unifying platform.

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In a nutshell: What is EMV?

Credit cards that work on EMV devices (an acronym of Europay, MasterCard® and Visa®) have a microchip with secure data. EMV is a global standard for payment cards using chip technology to authenticate the card and potentially the cardholder. The goal is to reduce potential fraud at a physical point of sale.

While traditional magnetic-stripe cards can be copied (“skimmed”) relatively easily with BOA_CC_emv_3_jpginexpensive skimmers, chip technology assigns a dynamic value for each transaction, making cardholder data virtually impossible to skim.

EMV cards and EMV terminals have become the norm across most of Europe. They will soom be the standard in the U.S. The appeal of chip cards for consumers centers on their greater physical control of their card and the increased integrity EMV cards provide. Portable EMV devices are brought to the consumer, who inserts their card into the device to initiate the transaction, in much the same manner as an ATM machine works.

With the card in the possession of the consumer at all times, consumer satisfaction and confidence are both increased. It’s an ideal solution for restaurants, retail and a wide variety of industries. EMV offers protection from the liability of various payment card fraud scenarios when a business processes the payment using an EMV terminal.

Are mobile payments going to catch on?

Using your cellphone instead of a credit or debit card sounds a bit too cute, like a solution in search of a problem. But, there a big issue being addressed behind this new technology, as Kevin Poulsen explained in Wired this month:

Systems like Apple Pay and Visa’s newly announced Visa Token Service accomplish the same security goals as EMV, but also work online. They replace the static credit card number with a temporary token that changes every time. “Initially, Apple Pay’s tokenization will only be for in-app purchases from mobile phones,” says David Robertson, publisher of the respected payments industry newsletter The Nilson Report. “But over time that will broaden.”