EMV CHIP CARDS HAVE ARRIVED.
LET’S GET YOUR BUSINESS READY.
EMV (which is an acronym for Europay, MasterCard® and Visa®) is an international standard for interoperability of chip cards and chips reading POS devices that is intended to reduce card fraud resulting from counterfeit, lost and stolen cards.
What is EMV Chip Technology?
Chip cards have an embedded microchip – imagine a tiny computer – that securely stores customer data. This provides strong transaction security features and other application capabilities not possible with traditional magnetic stripe cards.
On the front of the card, you’ll notice a special metallic symbol that resembles a computer chip.
Proven Worldwide Success
Chip cards are already in use worldwide. For over 12 years, other countries have been using the chip card system to reduce card- present fraud, and the U.S. is one of the last to make this important change. Soon, most U.S. customers will be carrying EMV chip cards. Once more secure chip cards are in use, counterfeit card-present fraud should decline dramatically.
Steps to Process an EMV Chip Card Transaction on an EMV Ready Terminal:
- Customer will insert the card into the terminal chip first, card face up. Do not swipe the card.
- The card will remain in the slot during the entire transaction.
This also applies to restaurant environments. - Terminal will prompt the customer to either enter a PIN (Chip and Pin) or sign the receipt (Chip and Signature)
- Customer will remove the card from the terminal.
Chip Cards vs. Traditional Magnetic Stripe
Chip cards are more secure than a stripe.The chip is more difficult to counterfeit than magnetic stripe cards because the information on a chip changes with each transaction. With a magnetic stripe, the data never changes, so once a thief copies the stripe, duplicates can be made.
Whether the payment card is inserted into the chip-enabled slot reader (contact) or waved above the device (contactless), the data on the chip ensures the card is authentic, and the PIN or signature ensures that the person presenting the card is the true cardholder. Now this is enhanced fraud prevention.
Keep in mind that while the US transitions over EMV cards, a customer can still swipe an EMV card using the magnetic stripe. However, this does not take advantage of added security technology embedded on the card’s chip and is not considered to be an EMV transaction.
Key Benefits of Switching to EMV
1. Superior Fraud Protection and Security
Card fraudsters are expected to concentrate their efforts on merchants who have not upgraded to EMV. Thieves prefer easy targets. Until you upgrade to EMV equipment, your business risks being attacked by thieves. The sooner you upgrade, the less vulnerable you will be.
The use of EMV ready equipment can prevent the use of counterfeit, lost or stolen cards. It can also decrease skimming at the point of sale, fraudulent transactions and chargebacks, and the ability to copy secure information from one card to another.
2. Reduce Your Liability: October 1,2015
As of October 1,2015, the liability for card present fraud will shift to whichever party is the least EMV-compliant in a fraudulent transaction. For example, if your business accepts and processes a counterfeit transaction on a non-EMV enabled terminal, the liability for the transaction is yours, the merchant, not the card issuer. Be sure that your business is upgraded to an EMV ready terminal by this date.
3. Accept Contactless Payments (le: Mobile Wallets)
Credomatic is offering state of the art POS terminals that also support emerging payment technologies. These terminals are equipped with NFC (Near Field Communications) to accept Mobile Wallets such as Apple Pay.
Good to Know EMV Terms
Chip and Pin – A “Chip and Pin” EMV card is when a card is linked to a security Pin Code, similar to Pin Debit.
Chip and Signature – A “Chip and Signature” EMV card is when a card is linked to a cardholder’s signature for added security to the transaction.
EMV Ready Terminal – A point of sale (POS) terminal that is capable and ready to accept EMV chip cards. Make sure your terminal or any other POS system you use to process credit cards has the ability to accept EMV chip cards.
Fraud Liability Shift – As of October 1, 2015, the Card Brands have announced that counterfeit fraud liability, which has been traditionally assumed by the card issuer, will be assumed by whichever party is the least EMV-compliant in a fraudulent transaction.
Deadline: October 1.2015
You may need to upgrade your point of sale (POS) terminals to be able to accept the new chip cards and comply with new EMV standards.
Credomatic has a range of EMV solutions that are suitable for your business.
Make sure your business is protected.
Contact your Credomatic Relationship Manager or our Merchant Services Team forterminal upgrades or any EMV questions.