Online PIN codes are not stored within EMV microprocessor smart chips. Rather, they are stored within the card issuer’s systems. When an online PIN is entered during a transaction, it is transmitted to the issuer for validation. Transmissions are encrypted for data security.
Online PINs are currently in use with magnetic stripe cards, and they are how most magstripe debit and all EMV ATM transactions are validated. The process is already familiar to card users.
According to the Smart Card Alliance, “online PIN or offline PIN CVMs may help protect against fraud resulting from lost, stolen, and never-received cards.”
Interested in EMV compliance?
Host Merchant Services offers EMV solutions for business owners. If you’re interested in getting a head start on the rest of the U.S. market, contact an HMS sales representative today and ask about our EMV-compliant equipment and processing options.