EMV stands for “Europay, Mastercard, and Visa,” the original developers of the chip-based payment cards and terminals. Overseen and supported by numerous banks, merchants, processors, and industry stakeholders, EMV works to manage and maintain smart card payment standards. Over two billion EMV chip payment cards are currently in use today. By the end of last year, Europe had the highest percentage of EMV chip transactions (97%), followed closely by Canada, Latin America, and the Caribbean. The US, however, has lagged behind, with just 0.1% of transactions EMV chip based. Consequently, more than half of the world’s credit card fraud occurs in the US.
But the numbers will soon change. October 2015 is the deadline for US merchants to be EMV-compliant. What does this mean for your business? If you have questions, you’re not alone. Here are the top 3 questions and answers that explain how the EMV chip migration is poised to change US credit card fraud, and how your business will play a significant role:
How will your business be affected? Whether you own a single or multi-location business, if you accept Visa or MasterCard payments, you’re obliged to comply. These and other major credit card companies are outfitting their customers with new cards equipped with an EMV chip, and you’ll want a Point of Sale that can read them. The good news is EMV compliance is a worthy investment—EMV-compliant terminals have been proven internationally to reduce card fraud. And from October on, if you choose not to be EMV-compliant, the burden of paying for any fraudulent charges resulting from the likes of counterfeit, lost, or stolen cards falls on you.
How does EMV work? Say goodbye to swiping and signing. EMV card payments can typically be made without contact, or by tapping or holding the card near the terminal. The chip encrypts each payment with a unique transaction code, and card data never has to enter the Point of Sale. This encryption protects cardholder information, reducing the likelihood for data theft and card-skimming. In addition, each time a customer pays with an EMV card, whether it’s a credit card or debit card transaction, they will be required to enter a self-identifying pin that authenticates the card both through the processing terminal and the card issuer’s host system.
How do you become EMV-compliant? EMV-compliance is simple; you will need an EMV reader with the software to process the information embedded in the EMV card. Cost of conversion will vary depending on your business’s size. Find a Point of Sale provider that can assist you with the migration process. From there, you will also have the obligation to train your personnel on the new payment types.
Trust your business with the leader in Point of Sale technology. Integrating directly with EMV readers, the Revel iPad POS System provides EMV compatibility. Years before EMV-compliance became a requirement, Revel Systems led the movement to boost security and flexibility on all sides, so retailers and their customers benefit.
Want to learn more about EMV? Watch a recording of Revels' EMV webinar featuring Bobby Marhamat, VP of Sales at Revel Systems, plus Dan Dermody, Sales Executive at Revel Systems, as they discuss this new standard and how it will affect merchants and restaurants across the United States. Access our EMV webinar recording here.