Barista handing a card reader to a customer making a payment with a credit card at a coffee shop counter.

What Is an EMV Chip?

4 min read

Last Updated: June 13, 2025

Table of contents

Key Takeaways

EMV chips are integrated circuit computer chips found on debit and credit cards, designed to combat credit card fraud.
EMV credit cards incorporate layers of security into each credit card transaction.
Despite the added security of EMV chips, safe credit card habits are still necessary to prevent identity theft and fraud.

If you’ve had debit and credit cards for a long time, you may have noticed a gradual shift at the cash register from swiping your card to inserting or even tapping your card on the card reader. Many credit card issuers have moved away from relying on the magnetic stripe to instead use a small embedded microchip called an EMV chip for payment processing. The EMV chip offers more protection from credit card fraud. Read on to learn more about EMV chip technology and what it means for you.

What are EMV chips?

EMV chips are integrated circuit computer chips, usually embedded on the ends of debit and credit cards.

Technically, “EMV” refers to a set of standards and tools for secure credit card payments. EMV chip cards meet those standards. They offer protection from card fraud and identity theft by adding layers of security to each credit card transaction.

How do EMV chips work?

An EMV chip, like a magnetic stripe, contains a credit card’s data. However, EMV transactions work differently. First, the chip communicates with a chip-enabled terminal to verify its legitimacy. Every time you pay with the EMV card, it produces a unique code for the transaction. This encryption process means that even if a scammer somehow accesses purchase information, they can’t use it to complete a fraudulent transaction or create a counterfeit card.

EMV chip payments usually involve extra measures to verify cardmembers’ identities. You may have to input a PIN or sign a receipt in person to validate your transaction. Some small purchases may not require this step.

What benefits do EMV chips offer credit card users?

Many merchants and credit card users have embraced EMV chip card technology because it offers many advantages, including:

Advanced security: EMV credit card processing features encoding, encryption, and layers of added security that safeguard card data, leaving users much less vulnerable to fraud than they would be with a magnetic stripe card.
More payment options: EMV chips offer more options at the register. For an EMV transaction, you typically insert the side of your card with the embedded chip into a payment terminal. However, many cards also allow you to make contactless payments by tapping the card on the EMV card reader or even just waving it nearby. This convenient option could help you save time at checkout.
Reduced liability: Before EMV specifications, liability for counterfeit cards and other fraud related to credit card transactions usually fell on the card issuer. In October 2015, however, guidelines changed to hold merchants accountable if they don’t use EMV technology on a transaction that results in fraud, according to the U.S. Bureau of the Fiscal Service. That means if a merchant swipes your EMV card instead of using the embedded chip, they’ll likely shoulder the cost of any fraud that occurs.
Global acceptance: EMV chip cards have become the global standard for credit card purchases. If you frequently travel abroad, you’ll likely want to carry an EMV card to ensure you can rely on credit as needed.

Did you know?

Discover^® Card is accepted at millions of places around the world.¹ If you’re a frequent traveler, you could earn rewards as you explore with the Discover it^® Miles credit card. Turn Miles into cash. Or redeem as a statement credit for your travel purchases like airfare, hotels, rideshares, gas stations, restaurants, and more.²

Learn More

What drawbacks do EMV chip cards have?

While EMV chip cards offer many advantages over traditional magnetic stripe cards, they still have a few drawbacks.

Although cards with EMV chips offer additional data protection, they aren’t foolproof. For example, if your merchant uses an unencrypted payment processing system, your information could still be compromised.

Cardmembers must maintain careful security practices when using their credit card to help prevent fraud. Be sure never to share your credit card information and to report stolen or lost cards right away. If you notice any questionable transactions on your credit statement, it’s a good idea to reach out to your credit card issuer right away.

The bottom line

The widespread adoption of EMV technology has made credit card transactions more secure through tools like encryption. However, precautions like credit monitoring and careful credit card habits are still critical for protecting your information.

Important Information >