The race towards implementation of EMV — the chip-based smartcard technology that’s replacing traditional magnetic-stripe cards — is quickly approaching. We have compiled just a few of the many EMV facts to help you understand EMV and the impact if may have on your business.
5 Things to Know about EMV:
- EMV was formed by EuroPay, MasterCard and Visa twenty years ago to create standards for payment processing. EMV processing has been widely adopted most places in the world except the U.S.
- Liability for fraud is shifting from credit card issuers to merchants/organizations accepting card present payments processed with devices that are not EMV enabled, if an EMV “smart” card is used for the purchase. October 1, 2015 is when the liability shift takes place.
- Card-Not-Present payments are not affected at this time. This includes recurring payments, or any transactions where a purchaser is not physically presenting a card for payment.
- EMV secures payment transactions with enhanced functionality in three areas: Card authentication, Cardholder verification, and Transaction authorization. Unlike a magnetic stripe card, it is virtually impossible to create a counterfeit EMV card that can be used to conduct an EMV payment transaction successfully.
- EMV is not a compliance requirement. But since liability is shifting to the merchant for card-present transactions, it is critical to protect your business by upgrading to an EMV capable solution.
Your payment processing provider should offer guidance important information on EMV timelines, equipment, and decisions that may impact the way you do business.
Contributed by Vanco Payment Solutions. Through the Michigan Chamber’s partnership with Vanco, you have the opportunity to accept credit, debit and other electronically based transactions at just 0.2% above cost. Email Vanco Payment Solutions or call them at 866-944-0055 to learn more.