EMV cards are smart payment cards that use a microchip to enhance security during transactions. The acronym EMV stands for Europay, Mastercard, and Visa, the companies that developed this technology. Unlike traditional magnetic stripe cards, EMV cards generate a unique transaction code for each purchase, making it difficult for fraudsters to replicate. These cards can be used at point-of-sale terminals and ATMs that support EMV technology. When making a purchase, users either insert the card into the terminal or tap it if it has contactless capabilities. This process helps protect against unauthorized transactions and reduces the risk of card skimming.