EMV, also referred to as “smart” or “chip” cards, is an important issue this year for any company or organization that accepts payment cards.
On October 1, 2015, liability will shift away from card issuers to any entity that accepts card payments and has not upgraded their equipment to accept the new smart cards. This means that if you do not have an upgraded card swipe device, your organization is responsible for fraudulent transactions.
It is important to note upfront that currently face-to-face transactions are at the heart of this change, so if you are an organization that uses electronic payments solely for recurring or online payments, then you are not affected by the EMV October deadline.
Here are some quick FAQs on EMV:
- 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.
- The acronym EMV stands for an organization formed by EuroPay, MasterCard and Visa twenty years ago to create standards for electronic payment processing. EMV processing has been widely adopted most places in the world except the U.S.
- 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, 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 enabled solution.
Be prepared when EMV arrives!
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.