What is EMV Card Authentication?

EMV card authentication is the process of validating card credentials by means other than reading the embossed numbers and digits on an individual payment card. EMV cards are credit/debit cards that contain a computer chip for added security. In order to validate the authenticity of a payment card, an electronic chip reader can be used with which to read the card's embedded data, such as a unique account number, expiration date and security code.
How EMV Card Authentication Works?
EMV is used in transaction authentication to provide more protection against credit card theft. It does this by making it extremely difficult (if not impossible) for stolen data to be successfully replicated on another card.
On the EMV Card Authentication page on the Discover website, a short list of frequently asked questions provides plain-language insight into the technology and its application to payment card security. Under "What is EMV?" Discover notes that an EMV card consists of a computer chip that stores information related to a specific account number and expiration date. For security purposes, this information is encrypted, rendering it useless to anyone who might intercept it during a transaction.
"When you swipe your card at the point-of-sale terminal," Discover adds, "the reader determines if your card has an embedded computer chip that can be validated." If so, Discover notes that encryption ensures the computer chip is only able to communicate with the Discover card processing network.