Biomertics Cards - 2

 End-to-end encryption 

An EMV card contains a microchip that stores and protects the user’s information. Communication between the user and merchant takes place during transactions only, making it nearly impossible for hackers to steal data such as bank details and personal cardholder information. POS readers authenticate the data offline to ensure the card is not counterfeit; then the user inputs a PIN number so cardholder verification can take place. Using cryptography, a unique code is generated to ensure personal details of the cardholder are never exposed. 

Up until recently, this level of security was 99.7% effective, and any attempts at stealing cardholder information were nearly impossible. In the US, counterfeit fraud dropped 76% in just over three years after the adoption of EMV technology.

Tokenization 

But as contactless payments have become more popular, extra layers of security have had to be introduced to prevent attempts at stealing cardholder data. Tokenization was introduced for card-not-present (CNP) transactions as a way of further disguising cardholder and transaction data. 

Most EMV card fraud occurs when the primary account number (PAN) details have been intentionally attacked and exposed. Tokenization adds an extra layer of security by replacing the PAN number with an encrypted code. This way, cardholder details are never transmitted. And even if token details are stolen, each code is unique and cannot be replicated or used again.

Biometric card security 

Biometric capabilities on EMV cards bring security features to a new level. Then the transaction can be authorized. Fingerprint reference data is stored directly on the card and can therefore never be stolen, hacked, or replicated.  

Benefits :-

1) Keeping merchants happy 

For merchants, the main benefit of biometric cards is ensuring no fraud liability can be placed on them, as these cards go above and beyond typical EMV standards. Also, there’s no need to buy new hardware, as POS readers in use today are compatible. Payment limits can be increased or done away with entirely with biometric cards; even if a card is stolen, no one else can use it

2) Increasing consumer satisfaction 

From a customer’s point of view, the extra layer of security is key. Anyone who has been the victim of card fraud, which had a global cost of $22.8 billion in 2016, will have no problem signing up for a new card. Although a small cost may be introduced to cover the manufacturing of these new cards, a one-off fee in return for years-long protection of your bank and personal details is an easy choice. 

What may put consumers off is having to visit their bank initially to register their fingerprint. This gets converted into an encrypted digital template to be stored on the card. Most providers at this stage don’t offer an alternative, so uptake may be slow initially. 

What’s holding EMV providers back from employing this technology? 

Production costs will be incurred, whether they’re passed on to consumers or swallowed by card providers. Instead of the $1 or $2 it takes to create a typical contactless EMV card, biometric cards can reach up to $20. Also, the typical placement of the CVV/CVC number on the back of EMV cards may need to be moved to allow space for the biometric scanner.