In 1994, Europay International, MasterCard and Visa (EMV) joined forces to create and pave the way for a worldwide standard for chip-based “smart card” technology. This new chip technology has the ability to reduce the use of stolen credit card data and will aid in speeding up the adoption of mobile payments – but it will have no effect on card not present transactions. If data is compromised, a counterfeit card would be unusable without the presence of the card’s unique chip elements. Dynamic elements to transactions will make account data hard to steal or compromise, thus making merchant systems safer and more secure.
Many questions have surfaced regarding EMV compatibility and we want to pass along important information so your business is better prepared when it is required – which is sooner than you may think.
How will it work?
You will begin to see more credit cards embedded with a chip that is encrypted with information. EMV supported equipment will have the ability to read the information that is stored on the chip within the card. During a transaction, strong cryptographic functions are used to validate the authenticity of the card and the cardholder. When this process is used with a PIN (personal identification number), the chip will prove that the customer is indeed paying with his or her own card, greatly reducing the use of stolen cards. However, this technology will have no effect on the “card not present” transactions.
Better yet, Visa’s Technology Innovation Program eliminated the requirement for eligible merchants to annually complete their PCI Compliance if at least 75% of their Visa transactions originate from chip-enabled terminals – must support contact and contactless chip acceptance.
The EMV expansion into the United States is in preparation of a fraud liability shift that is set to occur in October 2015. This liability shift will hold an acquirer or merchant who does not support EMV liable for counterfeit card transactions – whereas currently, liability primarily falls on the financial institution.
What do I have to do to be compatible with the new EMV technology?
To become compatible with the new EMV technology, we offer an easy-to-use peripheral that connects directly to your existing terminal – much like a pin pad. Click here to view a list of compatible terminals.
For a full demonstration of the VeriFone VX805, please watch this short video:
For a full demonstration of the First Data FD35, please watch this short video:
For more information about EMV and to order to your terminal, please contact us.
What is the deadline to be EMV compatible?
Because the fraud liability shift is set to occur in October 2015, we recommend all of our merchants are EMV compatible by August 2015. Please contact us with any questions or concerns you may have.
Source:
http://www.forbes.com/sites/thesba/2013/03/07/emv-chip-technology-secure-electronic-payments-2/