Is your business ready to dip the chip?
The nationwide EMV migration is well underway. Soon every credit and debit card issued in the U.S. will contain an EMV chip. So if you’ve been wondering whether you need to upgrade to that fancy new credit card machine or not– the answer is Yes!
WHAT IS EMV?
Developed jointly by Europay, MasterCard, and Visa in the mid-1990s– EMV is a global payment system that entails putting a microprocessor chip into debit and credit cards. This “smart” chip will minimize fraud for in-person transactions. Simply put, credit cards will now be equipped with a chip that’s extremely hard to counterfeit.
HOW IS EMV/CHIP MORE SECURE?
As opposed to the old magnetic-stripe cards, EMV (aka chip cards) offer a higher degree of security throughout the transaction process.
Traditional cards hold static information that does not change once encoded by the card’s manufacturer.
Smart cards generate dynamic data for each transaction which prevents the transaction data from being reused fraudulently.
Imagine it this way – right now, when a consumer makes a purchase, they effectively put their details on a piece of paper, stuff it in an envelope, and mail it off. If someone grabs the envelope out of the mail, they’ll know everything about them. With EMV, they take the same piece of paper, run it through a blender, and then mail it to the only place in the world that can unscramble paper from a blender.
The move to EMV is all about fraud. In 2013, credit card fraud in the United States was estimated at $7.1 billion dollars, a little more than half the total fraud around the world. In other countries that have adopted EMV as the standard, counterfeit fraud has dramatically declined.
HOW DOES A CHIP CARD WORK?
At the point of sale, there will be two main changes: 1. Instead of swiping the card through the payment terminal, merchants insert or “dip” the chip card into the slot at the front of that terminal. 2. Your new terminal will take slightly longer to read a chip card than a mag stripe, because the card will remain in the reader for the duration of the transaction.
THE IMPACT OF EMV ON YOUR BUSINESS
Currently, banks and processing networks cover costs for fraud. Starting October 1st, your business (not the banks) could be responsible for these costs if you’re not set up to accept chip cards. To prevent this from happening, you need to upgrade to a payment terminal that’s equipped to process chip-and-pin cards.
A primary way cybercriminals use stolen credentials is to create a false card to impersonate the actual card. As criminals recognize EMV implementation is underway, they tend to increase fraudulent activity.
Businesses still using magnetic stripe terminals after October 1, 2015, are on the hook for the costs if someone uses a lost or stolen credit card.
Show your customers you care.
EMV is the future of payment transactions; show your customers that you are concerned about the security of their data by implementing an EMV capable system.
GET YOUR BUSINESS READY FOR EMV
While the process of migrating to EMV transactions may seem tedious, it’s definitely worth your time. Protect yourself by taking the necessary steps to future-proof your business with technology from one our partners.