What is EMV? Chip cards explained for merchants (insert, tap, swipe)

EMV is the global chip card standard managed by EMVCo. A chip card (or a phone acting as one) creates a one-time security code for every payment, which a copied magnetic stripe cannot do. At the terminal that means: tap if you can, insert if you cannot, and swipe a chip card only when the terminal asks for it after a failed chip read.

Before you start

• Insert (contact chip): the card goes into the chip slot and stays there until the terminal says to remove it.
• Tap (contactless): the card or phone is held near the contactless symbol. EMVCo's contactless specifications cover both cards and NFC phones and watches.
• Swipe: reads the magnetic stripe. Visa's device guide says a terminal must read the chip when the card has one, and must not let staff choose a swipe instead.
• Why it matters: Visa's dispute guide says that if a chip card is swiped or keyed instead of read by chip, the merchant can be held liable for counterfeit fraud (the EMV liability shift).
• EMVCo reports that over 90% of card-present transactions are EMV chip-based.

Steps

1. Start the sale and enter the amount. If the card or phone shows the contactless indicator and the terminal shows the contactless symbol, let the customer tap. Expected: the card or phone is read with a tap.
2. Otherwise have the customer insert the card into the chip reader, chip facing up. Expected: the terminal reads the chip and shows the next prompt.
3. Leave the card in until the terminal says to remove it. Expected: the transaction finishes. Visa's device guide warns that removing the card early can make it fail.
4. Follow the verification prompt (PIN, signature, or none for small amounts). Expected: the sale goes for approval.
5. Swipe a chip card only if the terminal asks for a swipe after it could not read the chip. Expected: the fallback sale is sent online for approval. Visa says fallback sales must be authorized online.
6. If the sale is declined, ask for another payment method. Expected: no sale is completed without an approval. A decline comes from the card issuer, not the terminal.

If that did not work

A chip read can fail because the card was inserted the wrong way or pulled out early, the chip is damaged, or the terminal's reader has a fault. Trying a second card tells you which: see the chip card read error guide. If chip cards fail on every attempt, contact Allstar support with the model, serial number, payment application, processor and the exact message on screen.

Sources

• EMVCo: What is EMV Chip? (19 October 2022)
• EMVCo: EMV Contact Chip
• EMVCo: EMV Contactless Chip
• Visa Transaction Acceptance Device Guide (TADG) (version 3.3, August 2025), sections 4.2 and 4.2.2
• Visa Dispute Management Guide for Merchants (October 2026)
• Ingenico Desk Series User Guide (900016018 R11 000 13/0123)