Monday, August 17, 2015

What Business Owners need to know about EMV Technology

By Jason Grim, Lyoness Representative

Does your business regularly accept payments from magnetic stripe debit or credit cards?
If yes, then you know the fraud risks you are taking with every purchase. Credit card fraud has been perfected and nowadays far too common, putting consumers and businesses at risk. According to the U.S. Federal Trade Commission, 37 percent of fraudulent transactions in 2014 were from counterfeit credit cards, and 23 percent from cards that were either lost or stolen. With debit and credit cards making up the vast majority of consumer transactions, new technology needs to be implemented in order to safeguard our swipes.

What is EMV? 
EMV is a worldwide standard for credit and debit card payments based around the use of chip card technology.  The acronym stands for Europay, MasterCard and Visa, who collaborated to create the technology. At its simplest, it is a technological advancement in credit cards that implements a microchip instead of a magnetic stripe, providing stronger security for a reduction in fraudulent transactions. These fraud-preventing microchips reside inside a payment card that are read by the payment terminal. The chip technology adds one of the most important payment transaction benefits – enhanced fraud protection. The data on the chip ensures the card is authentic and requires the user to enter a PIN number as an added layer of protection ensuring that the person presenting the card is the rightful cardholder. Each chip contained in the card generates an original and unique code for each transaction. The unique identifier makes it easier to track transactions and identify fraud. EMV microchips are virtually impossible to counterfeit. Even a lost card is unusable without the PIN number.
Why should business owners care?  
EMV deployment in the U.S. is estimated to eliminate 95 percent of lost/stolen credit card fraud. By October 2015, there will be a liability shift.  While most card fraud is today absorbed by the bank or issuer, the party that has not adopted chip technology by that time will be responsible for the cost of the fraud. Merchants’ equipment will need to be updated in order to accept payments from EMV cards. If the equipment isn’t updated, the company could lose out on business and/or be held liable for any potential fraudulent activity. Meaning, business owners can be responsible for any fraud that occurs from processing magnetic stripe cards and any fines.

EMV at the Point-of-Sale
EMV fraud reduction technology protects merchants against losses from accepting counterfeit and lost or stolen payment cards at the point-of-sale.  You gain powerful advantages when you accept chip enabled cards.  By updating your POS system to accept contact and contactless
chip payments, you are taking steps to build a future-proof infrastructure that will support emerging payment innovations and reduce risk.

Business owners should make sure their equipment is updated. When you shop at large scale retailers and box stores you will notice the changes are being made to their terminals to be ready for this shift in payment processing.

Migration to the EMV technology in the U.S. will help:
·         Ensure that only the rightful owner can use the chip card, protecting against lost or stolen card fraud
·         Protect data on the chip against unauthorized changes, minimizing the chance of counterfeit fraud
·         Enable U.S. cardholders to use their secure chip cards anywhere in the world

Smart businesses are always looking for cost-effective ways to adopt new technology.  With EMV capable terminals and peripherals, you can reach beyond PIN debit, and future-proof your point-of-sale investment with all-inclusive consumer-facing devices—it’s fast, flexible, and more secure.
There are many solutions for EMV capable equipment. If you are interested for answers to your questions in working toward a solution for your business, please contact Jason Grim via email at

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