The Top 5 EMV
Questions Answered for Merchants
1. What is EMV?
EMV (EuroCard,
MastercardÒ and
VisaÒ) is more commonly known
in the USA as a chip card. It is a
globally accepted smart chip technology payment standard that was created in
the early 1990s. EMV cards come with an
embedded microprocessor that provides better transaction security, card
authentication and further application capabilities that are not viable with
the standard magnetic stripe cards. The
chip that is inside the EMV card interacts with the merchant’s point-of-sale
device making it very difficult to replicate.
2. Safer?
Really?
Yes, EMV cards
truly are safer and more secure for both customers and merchants. The chip technology makes the physical card
much more difficult to counterfeit. When
an EMV card is used for payment, the card chip creates a unique transaction
code that cannot be used again. It is like
stealing an expired password – it will not work.
3. What exactly does the “liability shift”
mean?
In the past, if
an in-store transaction is used with a counterfeit or stolen card, consumer
losses would fall back on the payment processor or issuing bank (dependent on
the card’s terms and conditions). As of
October 1, 2015, the liability for card-present fraud shifted to whichever
party is the least EMV-compliant. For
example, if a chip card is presented to a merchant who has not implemented an
EMV-enabled terminal, liability for counterfeit fraud will shift to the
merchant’s acquirer who will likely charge the fee back to the non-EMV
compliant merchant. If a counterfeit
magnetic strip card (non-EMV chip card) is presented at an EMV-enabled
terminal, liability will remain with the card issuer.
4. Is it required for all merchants to support
EMV?
There is no
requirement by law for merchants to support EMV at this time. However, you will be putting your business
and your customers at a higher risk for fraud.
With the liability shift, you are also putting your overall business on
the line. There is no government body or
third party that oversees the movement to EMV in the United States. However, the Payment Card Industry Security Standards
Council (PCI SSC) and EMVCO (the official EMV standard governing body) are
working with major card issuers on the adoption of EMV technology and implementation
in the United States. In short,
merchants who are accepting credit card payments will still be required to meet
PCI security compliance processes and will be subject to the liability shift
set forth by card issuers.
5. Are there any differences for the customer
at the point of sale?
The most notable
difference for customers will be that they insert the card into the EMV card
reader and leave the card in the terminal until prompted to remove. Although chip cards that require a PIN will
be standard, many EMV cards will be configured to allow for a signature. Overall, from the merchant’s and cardholder’s
perspectives, nothing changes.
If you have any specific questions about EMV and credit card processing, please contact Kristin Ahaus with Apex Payment Solutions (kristin@apexpaymentsolutions.com).
