EMV Credit Card Machines

If you have a merchant account and especially if your have a credit card machine you may have heard about EMV technology. 

EMV stands for Europay, MasterCard and Visa, have developed new technology to increase security with regards to transactions.  As a result merchant's using credit card terminals not offering this technology will bear the responsibility of any fraud as of October 2015! EMV credit card terminals can be expensive and it would be smart not to get stuck with a lease where you usually end up paying 10-20 times what the credit card terminal is actually worth. There are processors that will offer free emv credit card machines. Most companies offering free credit card terminals may  have a contract so make sure the one you choose does not or you may get stuck with hidden fees. 

Here is some more information on EMV: 

The deadline is fast approaching for businesses to transition to EMV card technology. 

WHAT IS EMV?

EMV cards contain a chip, in addition to the traditional magnetic strip, that is used to transmit data. Unlike standard magnetic card, EMV cards create a unique transaction code every time they are used. Each code can only be used once, making fraud more difficult and less likely to occur. 

WHAT IS THE PURPOSE OF EMV?

Create Universal Standards EMV has been around since 1992 U.S. is one of the last to adopt the card technology Makes traveling and doing business overseas easier Increase Security U.S reported $11 billion in credit card fraud in 2013 (Almost half of the world’s credit card fraud) EMV can help protect both consumers and businesses Fraud losses for brick and mortar retailers dropped 60% in the UK after adopting EMV technology

HOW TO PROCESS EMV TRANSACTIONS

EMV is a card-present technology that can be processed several ways.

Contactless Those individuals with NFC enabled cards (dual mode) can tap the card in front of a NFC enabled POS device and then provide either a PIN or signature. Chip & Pin Insert the card into a POS device which keeps the card until a PIN number is provided. (Most used worldwide) Chip & Signature Instead of providing a PIN to complete a purchase, this process just requires a signature. (Most likely to be implemented in the U.S.) Chip Only If a transaction is under a specific floor limit, neither PIN nor signature may be required.

UNDERSTANDING THE FRAUD LIABILITY SHIFT

Mark Your Calendar for October 2015 While each card payment brand (Visa/Mastercard/Discover/American Express) has their own unique description for the changes in liability, all agree that beginning in October 2015 when a fraudulent transaction occurs, whichever party (Merchant/Processor/Card Issuer) is the cause of the contact chip transaction not occurring will be held financially liable for any resulting card present counterfeit losses.

Responsibilities By the end of 2015, an estimated 70% of credit cards and 40% of debit cards in the U.S. will support EMV Merchants are responsible for having and EMV-compliant terminal Merchants are responsible for working with their Processor to ensure that the terminal is capable of accepting EMV transactions

PREPARING YOUR BUSINESS FOR EMV

When it comes to preparing your business for EMV adoption and standardization, the countdown is on. As a retailer, your first order of business should be the development of a detailed, time-sensitive EMV roadmap. Use it to outline the steps you'll take to be in compliance by the time October 2015 rolls around. By having everything upgraded and ready to go ahead of time, your business will be prepared to meet the requirements and ensure that you are not held liable for fraudulent transactions.

Sources

http://www.cardfellow.com/blog/emv-smartcards-ready-or-not-here-they-come/ 
http://www.foxbusiness.com/personal-finance/2014/07/10/8-faqs-about-new-emv-credit-cards/ http://www.nilsonreport.com/publication_chart_and_graphs_archive.php 
http://www.smartcardalliance.org/publications-card-payments-roadmap-in-the-us/ 
http://myfw.com/2014/06/18/emv-changing-way-business/ 
https://www.javelinstrategy.com/brochure/314
http://www.cardhub.com/edu/credit-debit-card-fraud-statistics/