EMV is here. We’re all using it at Target and other “early adopters” that demanded the added security features of EMV acceptance. Yes, it’s different and the transaction takes longer. No one really likes it. But, this technology was created for a specific reason; reduce fraud.
Does it work? Download our Credit Card Processing 101 eBook to learn more details.
The Chip in each card has a micro-processor that creates a unique transaction ID, and securely passes that to an EMV enabled reader. This technology has been proven to reduce fraud in each of the 80 countries it has been deployed in. The US is adopting it right now.
What is the EMV Liability Shift?
The Card brands (Visa/MC/AMEX/Disc) needed to incentivice all participants in the risk of the transaction (Processor or Card Issuer), so they mandated Card issuers to replace all magnetic cards in circulation with EMV enabled Credit Cards, and Merchants to have EMV ready terminals, by Oct 1st, 2015.
Now, more than ever, this liability shift exposes the potential increase in fraud for non-EMV adoptors. The entity with the oldest technology, will lose the rights to a fraudulent transaction.
Basically, if you’re a retailer who refuses to adopt EMV, and a Fraudulent card is used at your place of business, you lose that money.
Fraudsters know this, and like they always do, seek out the easiest targets. Fraud at your place of business means you pay for it, and the banks never look for them. These lifetime fraudsters know precisely which business are the easiest targets.
Are you at risk?
Ultimately, It is your responsibility to fulfill all responsibilities for accepting credit cards. Following the PCI DSS Best practices will provide all the necessary tools to protect your business from fraud.
Working with a merchant processor that understand this liability shift, and has deployable EMV solutions to meet any businesses demand, is the first step in becoming compliant. Reach out to your processor today and ask them how they can help you reach your goals.