Questions About EMV? Here’s Everything You Need To Know.
Since the liability shift on October 1, 2015, EMV has become the new standard for payments security at brick-and-mortar merchants.
WHAT IS EMV?
EMV stands for Europay Mastercard Visa and is the new chip technology in credit cards that forces consumers to insert their cards as opposed to swiping. It has many security benefits that have already reduced in-store fraud significantly. However, the greatest benefit to merchants that utilize EMV technology is that they are not liable for fraudulent chargebacks at their establishments.
EMV MEANS INCREASED SECURITY
EMV transactions keep customer information much more secure than traditional magnetic stripe cards. This is because when a magnetic stripe card is swiped, the same number is used to fund the transaction. That card number, if stolen, can be used for purchases right away. However, with EMV a unique code is generated for each transaction in addition to the card number, which makes in-store EMV fraud near impossible since it is so difficult to hack.
EMV SHIFTS LIABILITY FROM MERCHANTS
After October 2015 any brick-and-mortar business that a customer swipes a card that is EMV enabled is completely liable in the event of a fraud dispute. This means that the business will automatically lose the dispute and be required to refund the customer, whether or not it was legitimately a fraudulent transaction. Merchants that are equipped to accept EMV have the opportunity to defend themselves against fraudulent claims and chargebacks.
WHICH BUSINESSES NEED EMV?
EMV only applies to businesses that process card-present transactions, such as grocery stores and restaurants. For businesses in the card-not-present arena, EMV does not apply, and the merchant is always liable in the event of chargebacks.
HOW DO CUSTOMERS PAY WITH EMV?
When customers make a purchase with an EMV card, they will insert their card into the terminal as opposed to swiping it. The card should remain in the terminal until the screen tells the customer to remove it.
WHAT DOES IT COST TO UPGRADE TO EMV?
Every business is uniquely structured, and while some may just require new EMV equipment, others may require integrations with their POS systems, Quickbooks or CRM.
Our technology team is experienced in providing the most advanced integrations and can make merchants EMV ready at a fraction of the cost. Contact us today to get started.
AM I LEGALLY REQUIRED TO UPGRADE TO EMV?
For now, EMV is completely at the discretion of business owners, who will have to weigh the benefits of security and liability versus the process of making the switch. Fidelity is proud to have one of the simplest EMV solutions, which many times can be implemented at minimal cost and have you up and running in a short amount of time!
WHAT HAPPENS IN AN EMV TRANSACTION? AND WHY DOES IT TAKE SO LONG?
EMV transactions tend to take a bit longer than a swipe transaction because they are going through a few extra steps to make sure that the cardholder data is secure. The chips are generating unique codes, which have to be exchanged and authenticated by the bank before a transaction can be approved. All of these steps add a few seconds to each transaction, but pay off in the long run with the security benefits.
HOW EFFECTIVE IS EMV AT REDUCING FRAUD?
Very. According to Mastercard and Visa, merchants saw a 43 percent reduction in counterfeit fraud in just one year, between October 2015 and October 2016.
HOW DO I BEGIN ACCEPTING EMV?
To start accepting EMV, you will need a card reader that is EMV enabled. Fidelity offers solutions starting as low as $200. For more information on upgrading your business to the EMV technology standard, please give us a call, and a rep will consult with you on the best solutions for your business.
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