Chances are that if you’ve gotten a credit card recently, it’s equipped with EMV technology, which stands for “Europay, MasterCard, and Visa”. Translation: your credit card now has a teeny tiny computer chip inside of it that makes it extremely hard to counterfeit.
So, what’s motivating banks to switch over? Well, EMV technology sounds extremely beneficial, especially after recent data breaches that have occurred at retailers such as Target and Neiman Marcus. With half of the world’s credit card fraud happening right here in the United States, banks are keen on doing away with the faulty magnetic-stripe cards which are pretty easy to counterfeit. In fact, this technology isn’t exactly new. The United States is one of the last countries to join in on chip technology, while Europe has been utilizing it as early as 1992.
What makes EMV different from the traditional magnetic strip card payment process?
The major change between magnetic strip credit cards and cards using the chip technology is the way confidential data is stored and processed. When a consumer makes a purchase using a card featuring EMV technology, the payment terminal reads the microchip, authenticates it and instructs the POS to proceed with the transaction. The cardholder is then required to enter a pin instead of a signature. This is beneficial because signatures can be forged. It is also extremely unlikely that a thief would have access to the cardholder’s personal identification number.
Because transaction information is encoded uniquely each time the credit card is used, it’s nearly impossible for criminals to gain data and duplicate your credit card. However, data from a traditional magnetic strip card can be copied with a card reading device – enabling criminals and thieves to reproduce counterfeit cards, in result costing consumers and merchant’s money. EMV technology turns the tables with its authentication capabilities and its ability to verify the point-of-sale device, its authentication.
So how will this affect businesses? Although EMV technology seems to be counterfeit’s kryptonite, it will be quite expensive equipping businesses with compatible technology such as processing devices that are able to read the information on your credit card’s chip. However, not complying with the new technology could cause problems. Especially since businesses that don’t have an EMV processing device by October 2015 could be facing some pretty hefty setbacks.
So, what kind of liabilities is your business at risk for if it’s not equipped with EMV card readers? We’ll simplify it. Right now, if your business runs a fraudulent card, the bank assumes the cost. However, starting in October 2015, if your business accepts a fraudulent chip card, and your business is not using an EMV card reader, the bank is no longer liable to absorb the cost. That’s a nasty pill to swallow for any business owners, who were reluctant to fork up the cash in order to migrate to EMV technology.
All in all here are some really great reasons why businesses will benefit from EMV technology.
Hands down security is a huge reason why merchants should make the switch to EMV technology. It seems like a no brainer! Both merchants and consumers win. Merchants supply consumers with security, while gathering steady revenue. And consumers keep their information private.
The speed and productivity of the way consumers are shopping while using EMV technology could be a huge factor as well. Migrating to EMV technology will speed up mobile and contactless payment! That means more and quicker sales for merchants and added security for the consumer. Devices that accept EMV credit cards are dual both contact/contactless devices. By installing these devices to accept EMV, merchants are also readying themselves to accept mobile and contactless payments.
The switch will also improve how consumers purchase abroad. Since most of Europe has already migrated to using the EMV technology, it’s no surprise that many Americans using magnetic strip credit cards have been left stranded at the kiosk unable to make their purchases. Converting to EMV technology will force America to join the rest of the world and make payment a more unified transaction.
It comes down to the final question: What will migrating my business to EMV cost me? And how can Alpha Card Services help?
Like we mentioned, the benefits of switching to EMV technology will outweigh the possibility of fraudulent purchases for any merchant. The safety of your consumers will be greatly implemented and in the end the liability of costing your business money will be practically eliminated.
At Alpha Card Services we are serious about our merchant’s security. We have several EMV-ready credit card terminals, and as the October 2015 date approaches, we will work with all our merchants and partners to ensure EMV readiness.
To learn more about our solutions, click here. http://alphacardservices.com/Solutions.html