The days of the magnetic strip on your debit and credit cards are numbered. There’s a special chip, called EMV, and it’s making its way to the US. Some major retailers are already taking initiative and using this technology here in the states, but many small businesses will have to make the change by October 1st, 2015.
What Exactly Are Those EMV Cards?
EMV cards, developed by Europay, are special because they have an embedded microprocessor chip that encrypts transaction data in a different way for each single purchase. Some chips will require a personal identification number in order to complete the transaction, while other machines will require just a signature.
EMV has been used in Europe and even Asia for a number of years, and now it is being trusted in more countries around the world. The US is among the only developed countries who do not use this technology nationally, but that is about to change.
Since 2012, VISA has been encouraging retailers to start accepting EMV enabled cards. Mastercard followed in their footsteps, and now many credit cards companies are making credit cards suitable for international purchases.
Why is the US so Behind on This?
It’s simple… consumers in the US have not been asking for this. Only recently, with all the retail fraud cases, did individuals begin complaining to the credit card companies, and the change is finally going to take effect nationwide. Bill McCracken of Synergistics Research Corp. says that “people did not understand the benefits of a chip card, versus a magnetic stripe card.”
Does the EMV Card Have Better Security?
It sure does, or at least that’s what the security experts say. Because the transaction information is coded differently every single time, it’s much more difficult for cyber criminals or hackers to get useful data and use it for another purchase.
Benefits of Accepting EMV Cards:
- Increased security
- Reduced credit card fraud
- Secure EMV payments all over the US
- Ability to accept international credit cards
- Little no to liability to your as a business
What You Must Know of the Liability Shift
In order to reduce credit card fraud, Visa, American Express, MasterCard, Discover, and others have authorized what’s called liability shift that will be put into action by October 1st, 2015. This means that a business who avoids a contact chip transaction from taking place will be financially liable for any fraud or loss for the customer. For that reason, if a merchant does not have a machine that can support EMV-chip technology and fraud charges take place, that merchant will be financially liable.
It’s Time to Migrate Your Terminal
Issuers worldwide are including chips in bank cards and merchants are shifting to EMV-compliant and certified terminals to improve security and reduce debit and credit card fraud.
By using the most up-to-date EMV-certified terminal on the market, you can ensure that your POS machine is safer from fraud and that your customers’ data is protected.