Is Your Business Prepared for Smart Credit Cards?

payment depot Smart cards are coming. Is your business prepared? If not, you will lose sales and be held liable for fraudulent transactions. A Look at Credit Card Fraud With fraud always on the increase, Visa, Mastercard and Europay are constantly looking for ways to make our credit cards more secure. Having already been implimented in other countries around the world, the smart cards, which use a chip and PIN, will be introduced to the United States in 2014. Since 2007, the rate of Credit Card Fraud has doubled Most Credit Card Fraud is attributed to counterfeit cards 0.11 l01 10- lo08 0.07 2014 0.06 T0.05 o.04 0.05 0.02 001 2011 2012 2015 2014 Counterfeit Lost or Stole Stolen During Mailing 2007 2008 2009 2010 Identity-Theft Fraud Rate The worst states in America for Credit Card Fraud are CO and FL (rates are per 100,000 people) Credit Card Fraud happens to every- body. While the highest rates are in the age groups 40-49 and 50-59. people in their 20's still make up 19% of credit card fraud and those of us in our 30's account for 23%. The lowest rates are for people 60 and older. 490 480 460 450 440 430 410 400 Georgia Alaska Delaware wash Maryland Califormia Arizona Nevada 20 - 29 30 - 39 40 -4 60 + Colorado 11%- Where Fraud Happens 11% Most credit card fraud still happens 43% because of a lost or stolen wallet. The second most common method of access to a stolen credit card is while 3% conducting a transaction at a retailer. 13- Both of these methods of fraud will be dramatically reduced with the implimentation of smart cards and PINS! 19%- Lost or Stolen Wallet While Conducting a Transaction Friendly Theft Stolen Mail Online Data Breach Other Smart Card Implimentation 2014 is the year that smart cards will become a thing of normalcy in the United States. By 2015, almost all credit cards will have a chip in them. Both issuers and merchants face a deadline of October 2015 that will shift liability for counterfeit card fraud to the party in a transaction not equipped for EMV. Gas stations have until October 2017. 1,000,000,000 Americans carried more than 1 billion general-purpose payment cards in 2013 -579 million 597 million The credit card companies have made it a priority to start making those billlion payment cards considerably more secure in 2014 to protect us, and them- selves, from fraud. Credit Cards Debit Cards By the End of 2014 100,000,000 A4,500,000 EMV-capable point-of-sale terminals will be installed at merchant locations EMV payment cards will be issued 8% of Debit Cards will have the 25% of Credit Cards will have the EMV smart chip in them. EMV smart chip in them. 57% 25% EMV Debit Cards EMV Credit Cards UPGRADE BEFORE IT'S TOO LATE CALL 888-547-4604 WHAT IS A SMART CARD? EMV stands for Europay. MasterCard® and Visae. A smart card has a micro chip that makes it difficult for fraud organizations to target cardholders and businesses alike. HOW DOES AN EMV CHIP READER WORK? Your EMV Smart Card Terminal will communicate with the chip inside the customer's smart card to determine whether the card is authentic. The terminal will prompt the customer to sign or enter a PIN to validate their identity. This process effectively reduces the possibility that your business will accept a counterfeit card or be held liable for a fraud-related charge back from your credit card processor. Verfore WHEN IS IT HAPPENING? 25% of U.S. credit cards will already have EMV capability this year. By the end of 2014 70% of US. credit cards processed and 41% of debit cards will be converted By 2015. MasterCard, Visa, American Express, and Discover, will all be using chips in their credit cards, so merchants are required to have an EMV compliant terminal or "smart terminal." to increase security and reduce counterfeit cards, and fraudulent stolen cards. HOW WILL THIS AFFECT MY BUSINESS? SMART CARDS Merchants will be liable for counterfeit credit card fraud in a transaction not equipped for EMV. Merchants can be fined up to 50k by Visa & MasterCard for card data security breach :00000 •00000 :00000