What is EMV? EMV began as a joint effort between EuroPay, MasterCard, and Visa to ensure the security and global operability of chip-based payment cards, also known as “Smart Cards” or “Smart Chip Cards.” Smart card technology provides extra card authentications for transactions, validating the legitimacy of the payment type being used, and helping reduce the use of counterfeit, lost and stolen payment cards at retail points of sale. (First Data, 2012)
Since the adoption of EMV in other countries, the European Union had seen an 80% decrease in fraud. The United States, however, has seen a 47% increase – the fraud has moved from there to here. (Discover Financial Services. 2013)
Smart Chip Card technology reduces fraud by ensuring that no two transactions are alike. The new cards include a secure embedded microprocessor that talks to the terminal and keeps every sales transaction safe. The number of Smart Chip Cards in circulation is forecasted to rise to 575 million by the end of 2015. Representing about half of the U.S. cards in circulation (WSJ “Data Breach Puts Focus…” Aug. 2014)
EMV is here. For most merchants, this means upgrading their current terminals for a new set that can accept EMV Smart Chip Cards. If a merchant does not upgrade their equipment to EMV technology, liability in the event of a charge-back and any associated fees automatically fall upon the merchant.
How Will EMV Affect My Business?
- In the event a purchase is made with a fraudulent or duplicated card, a cardholder files a complaint with their card-issuing bank.
- The card-issuing bank delivers a refund of the illegitimate purchases made and issues a charge-back to the location the fraud took place.
- Is the enchant location does not have the EMV equipment required to process Smart Chip Card transactions, the merchant will carry the charge-back loss.
ARE YOU READY? – Learn more about the transition to EMV smart Chip Technology. Then, talk to your PrimaKeys consultant about making your business EMV-ready today!