Contents tagged with EMV

  • Best practices for EMV fallback transactions

    If a customer's chip is faulty, do you know the best way to process the transaction?

    Since the October 1 liability shift, merchants across the country have rushed to adopt EMV-enabled payments systems. With this high rate of migration, the payments industry is observing an exorbitant rate of fallback transactions coming from newly deployed EMV terminals.

    In these cases, chip cards presented at a chip terminal cannot be read due to technical issues with the chip. As a result, merchants are pressed to follow fallback acceptance procedures to ensure compliance with card acceptance rules. However, because these fallback procedures require merchants to revert to less secure transaction methods, such as magnetic stripe or key-entry, they must be especially careful when executing fallback purchases.

    To navigate the proper fallback procedures, keep these … more

  • The payment technology of the future. Hint: it's not EMV

    NFC technology allows any enabled device to send payment information to retailers with just a wave.

    Although EMV technology has been around for decades, its relatively recent introduction to the U.S. (and the ensuing liability shift) has brought the new credit card technology to the forefront of American merchants' minds. While EMV transactions and compliance have come to dominate the merchant payment conversation as of late, another, more innovative payment technology has positioned itself to eclipse EMV as the new future of consumer payment technology: NFC.

    To understand how this shift could take place, let's first take a moment to lay out the difference between these two payment methods.

    EMV, which stands for "Europay, MasterCard, and Visa," is the technology behind transactions between a chip-enabled credit card and an EMV-enabled payment terminal or ATM. Chip cards have become … more

  • What retailers need to know about the switch to EMV

    This little chip could change everything about the way your company accepts credit card payments.

    The U.S. rollout of EMV chip cards continues as merchants contemplate upgrades to their card acceptance technology when conducting in-person transactions.

    The EMV "liability shift" that began October 1, 2015 places the liability for card-present fraud onto whichever party is the least EMV-compliant in a fraudulent transaction. In plain English, that means that as long as a customer has an EMV card, it is the retailer's responsibility to provide the point of sale (POS) terminal to take advantage of the added security of the chip. If they do not, they would be considered at fault if a counterfeit card is used that the new technology would have been able to detect and prevent.

    Here are a few reasons merchants might want to consider being an early adopter of EMV:       & … more

  • Common merchant questions about EMV card-present transactions

    Here is what you do if your restaurant's system is compromised.

    As the card processing landscape is changing from mag-stripe to EMV chips with new regulations and technologies, merchants are seeking to understand the impact of these changes on their businesses. Here are two common merchant questions about EMV card-present transactions.

    Question 1: Will accepting EMV chip cards prevent data from being stolen at my business?

    EMV chip technology adds a layer of security to card-present transactions. Therefore, merchants installing EMV card readers would be limiting liability for fraudulent card transactions. This EMV technology protects against one type of credit card fraud, often called counterfeit fraud. EMV-chip cards are designed to decrease credit card counterfeiting by making them more difficult to copy. Unlike magnetic-stripe cards, which … more

  • The benefits of EMV terminals for retailers

    Installing chip-card capable terminals in your retail store will give your customers some peace of mind.

    Credit cards are an excellent source of convenience for both consumers and retailers alike. However, due to recent, massive credit card data breaches, some individuals are growing less confident about using them. For retailers, many are concerned because of the millions of dollars that are lost each year to fraudulent transactions. Therefore, many retailers are not just switching to EMV-ready terminals to protect themselves from liability, but also to help their customers feel more secure when purchasing items at their stores.

    While making the change to avoid becoming liable for fraudulent purchases after the October liability switch is important, it isn't the only driving factor. These cards are embedded with security chips that make it more difficult to steal customers' credit … more

  • Merchants should know the new EMV liability shift rules

    Here are the rules all merchants should be aware of with the new liability shift happening in October.

    One interesting new change during the switch to EMV cards for merchants and restaurants that accept tips is that the inserted chip card must stay in the terminal until the tip amount is put in and the transaction is complete. This change is made in an effort to lessen issues that occur with gift cards and prepaid cards regarding tip adjusting. However, Hotel News Now reports that there are basic rules all hotels, restaurants and retailers should be aware of that will go into effect after October 1.

    According to Visa, when a magnetic card is swiped at a traditional terminal, the merchant is not usually liable as they are now. However, now when a chip card is used at a non-chip card compliant terminal, if the purchase was counterfeit, the liability has now shifted to that of the merchant … more

  • What merchants need to know about the new credit card fraud liability rules

    Starting October 1, retailers, rather than card issuers, may be held liable for credit card fraud if an EMV card is accepted at an EMV-less terminal.

    New rules for retailer credit card fraud are slated to go into effect on October 1, representing the first major sea change in credit fraud liability in years. But what do merchants need to know to make sure that they're ready for this change?

    According to the financial news website The Street, come this October, U.S. retailers looking to better manage risk after a new shift in fraud liability will need terminals compliant with Europay-MasterCard-Visa (EMV) "smart cards," which are designed to better curb instances of counterfeiting. This shift in determining where liability lies if fraud occurs is just one step in a much larger process of pushing for a more widespread of EMV throughout the U.S.

    While card issuers — predominantly banks — used to … more

  • How will Apple Pay work with EMV?

    Apple Pay could have a positive impact on EMV adoption.

    Apple Pay has been out for a little more than a week now. Thus far, a number of merchants have adopted the service, with varying results. And while user adoption will take time, there is a tremendous amount of hype surrounding Apple Pay as it enters its second week of existence. This is consistent with most Apple product and service launches, and the belief shared among many is that the company that revolutionized digital music, the cell phone and the computer tablet will do so again with payments. However, that still remains to be seen and, before Apple Pay can truly take off, a number of questions must be answered. For example, how will it work with EMV?

    The launch of Apple Pay wasn't the only major industry event to take place in October. Earlier this month, Bank of America rolled … more

  • Bank of America begins EMV debit card rollout

    Bank of America will be implementing EMV technology into its debit cards.

    After months of anticipation, Bank of America is finally beginning to roll out an EMV program that will impact its consumer and small business debit cards. On Wednesday, the bank announced that all consumer and small business debit cards will include an EMV security chip, matching the technology already included in most of its credit cards. This will make Bank of America the first major bank in the United States to implement EMV technology into its debit cards.

    The EMV chip technology encrypts transaction information every time the card is used. According to Bank of America, this information will change with each use, making fraud difficult. Although Bank of America is the first major American bank to use EMV in its debit cards, the expectation is that others will join them and this … more

  • Majority of consumers believe in security of EMV

    Security is a major topic of conversation in the payment industry. Every major breach is news and consumers and businesses alike are putting a higher priority on having the right security features in place.

    Recently, NXP sponsored a survey by Vision Critical of 1011 American adults to examine consumer feelings toward EMV chip-card technology and POS security in general. The results show that that 69 percent of respondents believe that an EMV chip would make their credit payments more secure, while only 5 percent believe the opposite would be true.

    "There is a trust in technology and [in] their financial institutions to ensure their safety," Brintha Koether, the segment director for payments at NXP, told eWeek in a recent article.

    She added that many consumers in the U.S. appear to … more