Understanding EMV Technology

UNDERSTANDING EMV TECHNOLOGY KEEPING YOUR INFORMATION SAFE EMV, short for Europay, MasterCard, and Visa, is a credit card payment system in which tiny computer chips are embedded into credit cards. These chips store encrypted information about your credit card and the EMV technology makes it incredibly difficult for fraudsters to acquire this sensitive data. ОСТОВER 1 2015 By October 1, 2015, all merchants in the United States will be required to update their payment processing technology to accept EMV credit cards. ACCORDING TO THE AITE GROUP 70% 41% and of U.S. credit cards of U.S. debit cards WILL BE EMV-ENABLED BY THE END OF 2015. Chip technology was first used in France in 1987, with all bank-issued credit cards having chips embedded by 1992. There are now more than one billion EMV cards in use around the world, with the U.S. far behind most other developed nations. As card issuers and merchants in the U.S. prepare for the transition to using EMV technology, cards are equipped with both EMV and standard magnetic strip technology. There are a couple of major differences between magnetic cards and EMV cards. Standard EMV Magnetic Strip Swiped through a reader quickly Holds static data - financial information that can be reused to make purchases Inserted or dipped into a processor that reads the computer chip and remains in the terminal throughout the transaction Creates a unique transaction code each time the card is used that can never be used again These chips store encrypted information about your credit card. The EMV technology makes it incredibly difficult for fraudsters to acquire sensitive data. 2002 With EMV technology, domestic fraud loss in the UK has dropped MORE THAN 34% SINCE 2004. The United Kingdom adopted EMV technology in 2002. EMV cards can be chip-and-PIN or chip-and-signature. Chip-and-PIN cards operate like debit cards, requiring cardholders to enter a unique PIN number, which offers another layer of protection. Chip-and-signature cards work like traditional credit cards by requiring a signature to complete the transaction. Srg ne PIN 1234 The EMV chip contains information about the cardholder and the card issuer. IF A PIN OR SIGNATURE IS REQUIRED EMV NUMBER OF PIN ATTEMPTS ALLOWED SECURITY CREDENTIALS HOW EMV PROCESSING WORKS Payment processing with an EMV card is similar to how traditional magnetic cards work. Your card is read using a merchant's payment system and then the transaction is verified. Consumer makes a purchase with an EMV card by inserting his or her card into the merchant's payment terminal. EMV ENTER PEY If you have a chip-and-PIN card, you will enter your PIN here. 123 4S6 78 9 Be patient! The card must remain in the terminal until the payment successfully processes. This can also be achieved with near field communication (NFC), where the card and a special payment terminal exchange information wirelessly. EMV While the card is inserted into the terminal or communicates via NFC, data flows from the information in the chip to the cardholder's financial institution. The information about the transaction is encrypted to prevent fraud. The terminal submits an authorization request from the card issuer. The card issuer reviews the data, ensures it is authentic, and sends a response back. EMV When the transaction is approved, the purchase is complete. If you have a chip-and-signature card, you must sign your name to complete the transaction. BUSINESS OWNERS If you're a business owner, your business must be able to accept EMV payments by 2015 OCT.I Here's what you need to know: If you don't have EMV technology by the deadline, you may be liable for any fraudulent purchases made in-store, during card-present payments (a setting where a card is used to complete the transaction, such as at a grocery store) - Businesses will have to pay for an EMV sales terminal. Prices vary and you can use sites such as Merchant Maverick to compare prices and choose the best machine for your business. PUSH - You will need to complete EMV certification through both EMVCO and for each of the card issuers you plan to accept payment from. - Certification can take anywhere from a couple of weeks to as long as eight months, depending on the size of your business. The cost of certification will also depend on the size of your business. CompareCards.com Choose Wisely 2004 2010