Credit Card Glossary: Terms and Definitions
An EMV card, also called a chip-and-PIN card or smart card, contains a special computer chip to store card account data. Unlike magnetic-stripe cards, every time an EMV card is used for payment, the chip creates a unique transaction code that cannot be reused, thus stymying counterfeit card fraud. The initials EMV stand for Europay, MasterCard and Visa — the three processing firms that in 2002 first agreed to the standards. EMV cards are widespread in Europe and other parts of the world, and are being rolled out in the U.S.