Preparing Your Business for EMV

ARE YOU READY FOR OCTOBER 2015? THE DEADLINE IS FAST APPROACHING FOR BUSINESSES TO TRANSITION TO EMV CARD TECHNOLOGY. WHAT IS EMV? EMV cards contain a chip, in addition to the traditional magnetic strip, that is used to transmit data. Unlike standard magnetic cards, EMV cards create a unique transaction code every time they are used. Each code can only be used once, making fraud more difficult and less likely to occur. WHAT IS THE PURPOSE OF EMV? .......... CREATE UNIVERSAL STANDARDS INCREASE SECURITY • EMV has been around since 1992 • U.S. is one of the last to adopt the card technology Makes traveling and doing business overseas easier • U.S. reported $11 billion in credit card fraud in 2013 (Almost half of the world's credit card fraud) EMV can help protect both consumers and businesses • Fraud losses for brick and mortar retailers dropped 60% in the UK after adopting EMV technology HOW TO PROCESS EMV TRANSACTIONS EMV IS A CARD-PRESENT TECHNOLOGY THAT CAN BE PROCESSED SEVERAL WAYS. CONTACTLESS CHIP & PIN CHIP & SIGNATURE CHIP ONLY If a transaction is under a specific floor limit, neither Those individuals with NFC Insert the card into a POS Instead of providing a PIN to complete a purchase, this process just requires a enabled cards (dual mode) can device which keeps the card tap the card in front of a NFC enabled POS device and then provide either a PIN or until a PIN number is provided. PIN nor signature may be required. signature. (Most likely to be implemented in the U.S.) (Most used worldwide) signature. UNDERSTANDING THE FRAUD LIABILITY SHIFT While each card payment brand (Visa/Mastercard/Discover/American Express) has their own unique description for the changes in liability, all agree that beginning in October MARK YOUR CALENDARS FOR 2015 when a fraudulent transaction occurs, whichever party (Merchant/Processor/Card Issuer) is the cause of the contact chip transaction not occurring will be held financially liable for any resulting card present counterfeit losses. OCTOBER 2015 $150.00 RESPONSIBILITIES IIII MERCHANT PROCESSOR CARD ISSUER • Merchants are responsible for • EMV brings in new data elements • The Card Issuing banks are responsible for ensuring that the cardholder has having an EMV-compliant that need to be passed from the terminal merchant and ultimately to the card issuers. Processors are required to been sent an EMV enabled credit card; failure to do so will result in the card Merchants are responsible for working with their Processor to update their networks and Issuer being held responsible ensure that the terminal is specifications to be able to accept • By the end of 2015, an estimated 70% and pass on that information capable of accepting EMV transactions of credit cards and 40% of debit cards in the U.S. will support EMV TOTAL $120.00 PREPARING YOUR BUSINESS FOR EMV WHEN IT COMES TO PREPARING YOUR BUSINESS FOR EMV ADOPTION AND STANDARDIZATION, THE COUNTDOWN IS ON. As a retailer, your first Use it to outline the steps order of business should be you'll take to be in the development of a compliance by the time detailed, time-sensitive October 2015 rolls around. EMV roadmap. By having everything upgraded and ready to go ahead of time, your business will be prepared to meet the requirements and ensure that you are not held liable for fraudulent transactions. TO LEARN MORE ABOUT DEVELOPING AN EMV ROADMAP FOR YOUR BUSINESS, CONTACT YOUR MERCHANT SERVICE PROVIDER. SOURCES http://www.cardtellow.com/bloglemv-smartcards ready-or-not-here-they-come/ http://www.foxbusiness.com/personal-finance/20114/07/10/8-fags-about-new-emv-credit-cards/ http://www.nilsonreport.com/publication_chart_and graphs archive php http://www.smartcardalliance.org/publications-card-payments-roadmap-in-the-us/ http://myfw.com/2014/06/18/emv-changing way business/. https://www.javelinstrategy.com/brochure/314 САУАП http://www.cardhub.com/edukredit-debit-card-fraud-statistics/ http://merchantwarehouse.com/credit-card-processing