EMV vs. P2PE

Data security is a top concern for software providers and their customers everywhere. The biggest data breaches make it into the news; those that do not still inflict substantial damage on companies and their customers. High-level, up-to-date security technology in your software is essential to protecting your merchants.

What Is EMV?

EMV is the microchip technology that protects credit cards from being counterfeited. Fraudsters can use readers to replicate the magnetic stripe on a card a customer uses during a transaction. An EMV chip, on the other hand, creates a different code for each transaction. This technology provides an effective way to confirm the card in use is not counterfeit, protecting merchants and cardholders when transactions involve the physical use of a card. Credit card companies have reported a significant drop in credit card fraud after introducing EMV.

Major credit card brands (such as Visa, MasterCard, Discover and American Express) continue to increase their EMV card output and phase out older cards. Accordingly, they also incentivize merchants to invest in EMV readers by making those who do not adopt this technology bear the liability for fraudulent transactions.

How Does Point-to-Point Encryption (P2PE) Protect Security?

Data transmission can present a point of vulnerability hackers attempt to exploit. Even with secure encryptions at both end points, clear-text transmissions remain unprotected. P2PE addresses this issue by protecting data as it travels.

P2PE technology protects the sensitive data by encrypting credit card information at input; thus, the merchant must have the corresponding decryption hardware to decrypt it. P2PE encryption protects cardholder data from the moment of entry all the way to the processor.

As you can see, it is not a question of which is better. These technologies work together to protect credit card data. Paragon Payment Solutions offers these and additional secure payment solutions for your software.