If you have a merchant account for your business and accept credit card payments we’ve got some exciting news. EMV and chip card technology will be the new standard throughout the U.S. by October 2015. So what does that mean for you, your business and your customers? Here’s a breakdown of what you need to know so you can be excited too.
EMV technology through chip cards
EMV stands for Europay, MasterCard and Visa, a global standard for inter-operation of integrated circuit or chip cards with IC card capable point of sale terminals and automated teller machines that authenticate credit and debit card transactions. This microchip technology has been in use throughout Europe for some time. Even though the U.S. is among the last countries to convert to EMV chip cards we are doing so rather rapidly. By October 2015 all point of sale terminals must be converted to new chip card capable models.
A new level of security
The chip card generates a unique code that the issuer must verify in order for the transaction to be approved. In addition, card issuers may also require a signature or pin code for added security. This extra step might apply to any card but more likely to contact-less cards and mobile wallets.
Each time an EMV card is used for payment the card chip creates a unique transaction code that cannot be used again. This eliminates typical card duplication fraud because the stolen transaction number created in that instance is not re-usable and the fraudulent transaction would be denied.
This advancement in credit card security makes it much harder for hackers to capture and use personal data. This is a welcome change in the wake of numerous large-scale data breaches and increasing rates of counterfeit card fraud and identity theft.
Merchants will be affected by EMV
If you already accept credit cards you should be familiar with PCI compliance rules for merchants. If not, please read our post outlining the details. As a merchant, you will still be required to maintain full PCI compliance as before EMV. Your current point of sale technology will require upgrade to an EMV capable device for reading the microchip. A customer will insert their card into the device and leave it there for a few moments while the code is verified. New devices include a digital screen that guides the customer through the transaction process.
Conversion to EMV technology is a vast improvement and step towards reducing and eventually eliminating credit card fraud. By the way, there’s no need to wait until October. The technology is already available so let us help you convert to EMV today.