With the shift to EMV credit card terminals six months in the past (October 1, 2015 was the deadline for adoption of EMV ready equipment by merchants) only 37 % of merchants are actually ready and by late January only 17% had activated chip-card readers. The fault is not the merchants’ for failing to activate equipment. Many times the payment processor or acquirer does not have the certification in place to turn on the technology. It is estimated by end of 2016 only 50% are expected to have functioning readers.
Some retailers have become so frustrated that lawsuits are being filed to help recoup some of the extra charges they are experiencing when they have completed the EMV upgrade but are left with equipment that doesn’t function and provide proper protection.
Do you have at least one EMV card in your purse or wallet?
About 70% of us have at least one EMV ready card and yet many of us still have several cards that have not been upgraded. Chances are your credit card issuer has plans to replace your old-school magnetic stripe credit card with a chip card in the next few months. Call the 800 number on the back of your credit or debit card and ask your issuer when your card is scheduled for upgrade.
EMV deters fraud only in face-to-face sales
Criminals can still use stolen card numbers to make unauthorized purchases on the web or over the phone. There have been several reports of increases of in card not present fraudulent transactions.
For added protection when you shop online, ask whether your card issuer offers the option of an account number that changes with every transaction (Bank of America’s ShopSafe and Citibank’s Virtual Account Numbers are two such programs). With eligible cards from MasterCard, you can sign up for SecureCode; and additional security layer that uses a PIN for you to enter each time you checkout. Similarly, Visa cardholders can register with Verified by Visa to receive a password for online purchases.
Are you a merchant that has not yet upgraded to EMV?
Give us a call and we’ll get you set and compliant for your merchant processing.