Are You Ready for EMV?

 

 

It’s no secret that payment card fraud is a growing problem all over the world. That’s why EMV has become such a popular topic and you’re starting to see financial institutions and credit card issuers slowly begin to issue EMV-enabled cards to their accountholders. With the October 2015 EMV liability shift rapidly approaching, we've been getting lots of questions from merchants about EMV and how it will affect their business. We've also heard stories of unscrupulous agents and Merchant Services companies who are using scare tactics about EMV as a way to get their merchants to buy new POS equipment and switch their merchant account to a different processor. We want to continue to service your processing needs and want you know the correct process to get ready for these changes.

We believe in taking a different approach, one that focuses on honesty and transparency. That's why we arm our sales partners with the tools they need to be successful so they can grow their business quickly. For example, we recently introduced some new resources focused on EMV.

To make sure that you’re in the know about EMV and chip card technology, below are answers to some of the most common questions surrounding EMV.

What is EMV?

• EMV stands for Europay International, MasterCard, and Visa and helps stop counterfeiting and fraudulent payments.

• Rather than a magnetic stripe, EMV uses a microprocessor chip embedded in the card.

• EMV-enabled cards can be either debit cards or credit cards and are often referred to as chip cards or smart cards.

  What does an EMV chip provide?

• Offers enhanced cardholder verification

• Makes it virtually impossible for criminals to counterfeit cards

• Validates the authenticity of each transaction with a unique digital signature

  Are there any other benefits to EMV?

• Lower stolen card fraud (when verified by a PIN)

• Fewer chargebacks because EMV verifies that the cardholder was present

• More satisfied customers because cardholders know their card will work; this is especially important for travelers from other countries where EMV cards are prevalent

  What do I need to know about the October 2015 liability shift?

  In October 2015, merchants without EMV capability in their POS system will hold the liability for transactions with counterfeit cards. Failure to comply means that the merchant will be held financially responsible for any resulting card present counterfeit card losses.

  Learn more about EMV!

  
  To help make sure that you understand all of the facts about EMV, we developed a white paper that is available free of charge. Please see the attached Facts on EMV White Paper.

  What do merchants need to do?

• Eventually all merchants will need new equipment that has a smart card reader for chip cards, in addition to a magnetic stripe reader.

• The easiest way to tell if a merchant’s terminal is EMV-capable is to see if it has a slot on the front where the consumer would insert their card.

• In order for the terminal to be fully EMV-ready, it also needs the right software application, which can be obtained by downloading it from your merchant services provider. All you will have to do is contact me at 800-670-8064 and request a new download build for your machine that will accept the Smart Card.

• This means that if a merchant already has an EMV-capable terminal, they shouldn’t have to buy a new terminal to accept EMV cards.

  When should a merchant upgrade their POS equipment?

  How soon a merchant needs to upgrade their POS equipment depends on their business:

• If they have foreign customers or are located in a large city and many of their customers are from outside the U.S., then they should start planning to support EMV.

• If the merchant is located in a rural area, they can monitor how many EMV-enabled cards they see in their business and use that as a basis for when to upgrade their equipment.

• Keep in mind that by upgrading your equipment you the merchant will also be able to accept new forms of payment, like Apple Pay. You will need to upgrade your equipment by October 15, 2015. If your credit card machine does not have the Smart Card slot in the front of the machine then you will need to upgrade your equipment. Please call Ed Crain at 800-670-8064, email me at merchantservices@eglobalbsi.com or Fax at 321-445-5558.