Merchant Accounts Processing | EMV Upgrade

EMV Upgrade

Get your business ready for the switch to EMV™.

A New Standard for Merchant Payment Security

What is EMV?

EMV chip technology is becoming the global standard for credit card and debit card payments. Named after its original developers (Europay, MasterCard® and Visa®), EMV smart chip technology is featured in payment instruments (cards, mobile phones, etc.) with embedded microprocessor chips that store and protect cardholder data. This standard has many names worldwide and may also be referred to as: “chip and PIN” or “chip and signature.

What is chip technology?

Chip technology is an evolution in the payments industry designed to help increase security, reduce fraud and enable the use of future value-added applications. Chip cards are standard bank cards with an embedded micro computer chip. Some may require a PIN instead of a signature to complete the transaction process.

EMV enabled

What makes EMV different than the traditional magnetic stripe card payment?

Simply put, EMV is the most recent advancement in a global initiative to combat fraud and protect sensitive payment data in the card-present environment. A cardholder’s confidential data is more secure on a chip-enabled payment card than on a magnetic stripe (magstripe) card. Chip embedded cards support dynamic authentication, while magstrip cards do not (the data is static). Consequently, data from a traditional magstripe card can be easily copied (skimmed) with a simple and inexpensive card reading device – enabling criminals to reproduce counterfeit cards for use in both the retail and the card-not-present (CNP) environment. Chip technology used in EMV-enabled cards is effective in combating counterfeit fraud with its dynamic authentication capabilities (dynamic values existing within the chip itself that, when verified by the point-of-sale device, ensure the authenticity of the card).

Are there other incentives for accepting chip cards?

In addition to the reduction of fraud and related chargebacks, there are other cost savings associated with EMV acceptance. The payment brands are doing their part to ensure chip-bearing customers can pay at chip-enabled businesses. For example, Visa and MasterCard have issued upcoming deadlines, rules and guidelines for processors and merchants to support EMV chip technology. Visa is introducing their Technology Innovation Program (TIP) to the U.S. region, which waives an annual PCI-DSS audit if 75 percent of the merchant’s Visa transactions are processed through a dual contactless and contact EMV certified device. MasterCard is also introducing their PCI-DSS Compliance Validation Exemption Program to the U.S. region, which also waives the annual PCI-DSS audit if 75 percent of a merchants’ MasterCard transactions are processed through a dual contactless and contact EMV certified device..

How am I impacted by the EMV liability shift?

With the liability shift, after October 1, 2015, if a chip card is presented to a merchant which has not adopted a terminal certified for chip card acceptance, liability for any related counterfeit fraud may shift to the merchant’s acquirer – who may then pass this fee back to the merchant. The liability shift encourages chip adoption since any chip-on-chip transaction (chip card read by a chip certified terminal) provides the dynamic authentication data which helps to better protect all parties. In addition, if a counterfeit magnetic stripe card is presented at a chip certified terminal, the liability for the counterfeit fraud will be the responsibility of the card issuer.

Will I still be able to accept traditional credit and debit cards?

Initially, many EMV enabled terminals will also have magnetic stripe s wipe readers, which will enable you to continue accepting payment cards which are not chip-enabled. Chip cards will also still have a magnetic stripe during the first phase of the U.S. migration to EMV, to ensure customers can continue to pay until all merchants have been given enough time to upgrade their equipment.

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