EMV Technology is heralded to be the next stage of global simplification in backend processing of payments made electronically. But the time to act is now, stresses, FIME, a Bangalore based consulting and testing services company for payment solutions. Globally, the two electronic payment majors MasterCard & VISA are collaborating to introduce & ensure growth of their electronic payment solutions. Additionally, India too has affirmed its support in this endeavor. In fact, Reserve Bank & NCPI, recently launched EMV payment scheme, RuPay & is aimed at providing security and financial inclusion for India’s largely un-banked population.
What is EMV?
Europay, MasterCard and Visa (EMV) have jointly come up with the stable electronic payments (e-payments). Based on smart-chips inserted into virtually all instruments of payment, the companies are trying to eradicate the loophole for financial fraud. The chip allows electronic access to the Credit/Debit card & hence is supposed to genuinely authenticate the user utilizing the card. Without the chip, Point of Sale (PoS) personnel currently have to physically verify the ownership & such feeble security can be easily bypassed.
Across the globe, countries are busy realigning their payment processing policies & procedure to comply with this new standard. Once completed, payments across continents will not only be safer, they will be faster & cheaper too. With automated authentication, banks could easily lower processing charges & this would simply translate into lower overheads when transacting. Since Governments are involved, this conversion & adoption of newer standards is not only urged, its mandatory says a confident Prakash Sambandam, MD, FIME India, “Due to the global momentum towards EMV and the drive by the Reserve Bank of India to stabilize the country’s payment framework, a mandate for EMV technology is expected to be issued in early 2013. Once agreed, banks and other payment stakeholders will be required to adhere to the standard”.
Will the end-user have to do anything? Since the electronic chip will be embedded within the card, present account holders will eventually have to approach their respective banks/financial institutions to hand-over the, then obsolete cards, in lieu of new cards. Though this exercise may seem cumbersome, it should improve services & safety. Do you see any problems in the implementation? Do let us know your views.
Image Courtesy | incyprustoday
