Written by Cara Dolberg
Lately, we’ve been receiving quite a few phone calls regarding EMV and what next steps should be taken to become compliant. To help clear the air, we’ve compiled a list of frequently asked questions below.
1. What is EMV and its purpose? EMV (Europay International MasterCard Visa) was formed as a joint effort to help reduce counterfeit credit card fraud at the business level. Credit cards with the new smart chip technology will be issued in the next 6-12 months or so. When used with the proper equipment, chip-based cards make counterfeiting virtually impossible. EMV will not have an impact on card-not-present transactions.
2. How do I become compliant? Because details and plans are still being put into place, the actual processing technology has not been released. When it is released, if you are a current CHIPD merchant, we will be in touch with you on the next steps – most likely a quick download update. Our processing provider is the largest provider in the United States so if a company is contacting you stating that they are EMV compatible right now, you may want to do a little more research before giving any information.
Next, see if your terminal is compatible. Do you see a slot in the front of your terminal just big enough to insert a credit card? If not, you’ll need to purchase a peripheral device that plugs into your terminal. See below…
3. What is the difference between contact and contactless cards? Contact cards (regular, chip-enabled credit cards) can be processed by inserting the card into the front of the terminal. The peripheral device faces the customer so the clerk will usually never even touch the credit card.
Contactless cards are able to be processed by simply holding the card or FOB to the top of the peripheral device. The magnetic strip sends the information and once the device beeps, your transaction is complete. Again, this is all completed by the customer so the clerk will most likely never touch the card.
4. How do I become compliant if I process over the Internet or my mobile device? As of right now according to our sources, EMV is only affecting businesses processing over a traditional, stand-alone terminal. Businesses processing payments using an online terminal or a mobile device are not affected at this time.
5. What is the liability shift and how does it impact businesses? The liability shift means if a business is not compatible to accept the new chip-based technology, financial liability will be placed on the party where an EMV compatible card transaction resulted in counterfeit.
6. I keep receiving calls from other providers saying that I need to update my equipment now. Is this true? No, you do not need to update your equipment now. There are some unethical merchant services providers using the new EMV shift as a sales tactic to lure in businesses. We have heard they are extremely pushy and don’t necessarily disclose who they are or who they are with.
If you receive any strange phone calls or have any questions regarding your credit card processing account and/or EMV, please don’t hesitate to contact us at (402) 206.2233 or [email protected]. We are happy to answer any questions you may have. To learn more about CHIPD and our staff, please visit our website: www.chipdpay.com.