TOP FIVE THINGS TO KNOW ABOUT EMV/CHIP CARD TECHNOLOGY
Chip Card/ EMV payments are on many business owner’s minds. Here are five things your customers need to know to ensure their business is chip card ready.
1. Chip cards, also known as “Chip and PIN” and “Chip and Signature” cards; come with a microchip embedded in the card. The technology is more secure than what’s found in traditional magnetic stripe cards, which can all too easily be skimmed for counterfeit purposes. Retailers, banks and card issuers lost $5.3 billion to credit-card fraud in America in 20121 —which can be effectively curtailed with widespread use of EMV technology. Once chip card technology was implemented in the UK, it drove a 72% decrease in face-to-face card fraud.2 Similarly, counterfeit card fraud in Canada decreased 48% from 2011-2013 following the EMV roll out there.3 The proof is in the numbers!
2. Effective October 1, 2015, counterfeit fraud liability, which has traditionally been assumed by the card issuer, will be assumed by any party that does not enable EMV. The best way to protect your business from this liability is to use EMV-enabled POS terminals that accept chip card transactions.
3. Recognize the difference between a magnetic stripe card and a chip card transaction. The most notable change to you and the cardholder is that when using chip cards, the card never leaves your customer’s hand, and it’s inserted into the terminal during the entire transaction rather than quickly swiped through the side of the terminal. You present the terminal or a PIN pad to your customer for payment.
4. Determine whether your POS terminals are EMV capable. An EMV capable terminal may just need a software download to accept chip cards. An older terminal (often pre-2013) may require an upgrade to a more recent model. If you know your terminal is EMV-enabled, but you’re not sure how to run chip transactions, there are a variety of how-to resources available.
5. EMV/chip card technology is new for consumers as well. Business owners need to educate their employees on how to conduct a chip card transaction. Ensuring employees can walk a customer through this new type of transaction provides a better customer experience and further reduces the incident of card present fraud during this EMV technology transition.
EMV technology and chip card acceptance is changing the way customers pay. Educate your business customers on this technology so that they are ready to accept chip cards and avoid potential counterfeit card fraud liability. For more information please visit www.chipcardnow.com.
1 The Economist, Why America Has Been Slow to Adopt Modern Credit Card Technology, October 2014
2 Financial Fraud Action UK, Fraud the Facts, 2014
3 Canadian Banker’s Association, Credit Card Fraud and Debit Card Fraud Statistics, 2012-2013