The EMV Update
At the beginning of 2017 we offered a blog titled Implementing EMV. This global standard for credit card payments based on chip card technology takes its name from its developers—Europay, MasterCard, and Visa. Finally, the sweeping move to EMV credit card technology has begun in the United States. The number of Visa chip cards in the U.S. has increased by 182% since October 2015.
To summarize this technology, the chip in the card encrypts information by offering something called a data dynamic. Think of this dynamic as a one-time use password that is created to protect each transaction at the terminal. The ability of this smart card to generate each particular password per transaction is a key factor in EMV’s security, decreasing credit card fraud on card-present transactions. For merchants who have completed the chip upgrade, counterfeit fraud dollars dropped 58% in March 2017 compared to a year earlier.
As the chip card makes great strides to replace magnetic strips, we bare witness to the great conversion from old technology to new. Behavior patterns historically reveal that there tends to be a lag and a pinch of apprehension whenever the collective population is pressed to make a change. We have stretched across that hurdle and are headed into a breath of compliance. As with all things, though, regardless of their nature, there are two sides.
The upside of using EMV
- Highly secure in protecting consumer data versus the magnetic strip due to encrypted microprocessor chip.
- True. Chip cards are encrypted to offer a greater level of protection than ever before. What about privacy though? An older technology, Radio Frequency Identification (RFID), emits a radio frequency, continuously broadcasting your card’s location, whether in MacDonald’s or Wal-Mart, to your bank or other issuing organization.
- Good news…the computer chip in an EMV card does not use this technology at all. Invasion of privacy is no longer an issue with EMV technology. Bottom line, your EMV card’s computer chip does not transmit an RFID signal. Rest assured.
- New revenue outlets can be created through chip cards and smartphone payments via marketing strategies and loyalty programs that can be transmitted directly from the merchant to the card or device.
- 50% of U.S. storefronts now accept chip cards.
- Consumers are becoming familiar and more comfortable using this new technology of paying for goods and services.
- 62% of Visa credit and debit cards are chip cards.
Financial institutions, consumers, and merchants want their financial data secure and uncompromised, first and foremost. Feeling
EMV Implementation Tips
As more and more industries enter the EMV realm, there are both joys and challenges of having the EMV option. Customers and business owners can enjoy the security of EMV chip-cards to reduce fraud by protecting against loss from counterfeit stolen cards. Customers and business owners must also adapt to this new way to pay. When EMV is available to your business, know your device and teach your staff about it so they can help customers through the steps of an EMV transaction.
Cards with a mag-stripe and an EMV-chip will exist simultaneously until all merchants have EMV-capable devices and until all banks replace all existing mag-stripe cards issued to their customers with an EMV chip. Some devices have the EMV terminal slot, but it doesn’t function.
TIP: If you have a non-functioning terminal, make a sign or insert a placeholder to let customers know if EMV is not available. Some examples of sayings are, “Please swipe card,” “Swipe card here – Chip card functionality coming soon,” or “Please swipe; Do not insert card.”
Because the cards in use today have both a chip and a stripe, people may swipe their card first out of habit. If EMV is enabled on the device, it will reject the swipe and tell the user to insert their card instead. Once a person inserts their card (also called “dipping”) with the chip-end first, facing up, they need to wait to remove it until prompted to do so. While the card is inserted into the terminal, the chip
Businesses Must Know About EMV
The New Chip Technology
What is EMV?
EMV, commonly referred to as chip technology, is the future of secure bank and credit card transactions in the United States that will greatly reduce the threat of fraud from counterfeit, lost and stolen cards. Basically, EMV is a set of specifications for smart card payments and devices that accept those types of payments. Those specs are then embedded into a microprocessor chip embedded on a bank or credit card. The technology and specifications are widely used in over 80 countries globally as the standard for secure card transactions versus the traditional magnetic swipe card in the U.S., which has been plagued with security issues for years. EMV also provides interoperability within the global payments infrastructure and EMV-compatible terminals making it easier for U.S. issued cards to use for secure transactions worldwide.
When will EMV be Adopted in the United States?
As mentioned earlier, EMV standards have been in use worldwide for several years. Major card issuers, including American Express, Discover, MasterCard and VISA have announced their movement to EMV cards within the U.S. by October 2015. This will greatly increase cardholder protection against fraud and the compromising of data for most U.S. cardholders. For a list of United States credit and debit card issuers who have announced plans to issue EMV payment cards, visit http://www.emv-connection.com/u-s-emv-issuers/. It is important to note that introducing this particular technology into