With all merchants who accept credit cards facing the impending shift to the EMV standards, our partners at Petroleum Processing Solutions will be providing us with some helpful information to guide you through the EMV mine field of equipment, processing standards and requirements all will face in the next few years.
EMVCo is a worldwide group comprised of six member organizations (American Express, Discover, JCB, MasterCard, UnionPay, and Visa) and supported by numerous banks, vendors, and other industry stakeholders who act as associates. Among these associates, EMVCo is managed by a Board of Managers and an Executive Committee, as well as various Working Groups. Their goal is to facilitate the most secure payment transactions possible through utilizing and evolving the EMV Specifications through processes such as card and terminal evaluation, security evaluation, and management of interoperability issues.
Since the shift began towards EMV began here in America a year and a half ago, vendors and industry professionals have had to implement a great deal of new technology and processes into their businesses. Because it is an ongoing process, many questions are often asked about EMV, including what makes them more secure than traditional cards, how they are used, if “card-dipping” is the only way to use them, whether or not they will require a PIN, who will be liable for costs in the event of fraud, whether or not the shift EMV is complete, if an EMV card will work at a retailer not yet supporting the technology, and if an EMV card can be used while traveling outside the country.
Introducing EMV technology has come with its fair share of challenges and difficulties. According to industry professionals, certain trends have been established, and from these trends, the course of the payment industry can be speculated going forward. Among these findings are that most customers have chip cards in their possession, and that more stores will be accepting them in 2017. As well, chip cards have been found to reduce counterfeit fraud and protect the card’s magnetic stripe (while they remain), and thanks to using data from the previous year and a half to improve the technology, transactions using the chip are now much faster and easier. In addition, the loud beeping noises from EMV terminals are not likely to be necessary anymore. Also, while ATM card skimming fraud saw a rise in activity during 2016, upgraded ATMs compatible with EMV technology should deter further card skimming.
As EMV becomes the standard in payment processing technology, having the technology capable of accepting chip cards will no longer be an option for merchants. As of now, magnetic stripes are still accepted as the transition continues, but businesses that do not support the more secure EMV transactions could pay a heavy cost in the event of fraudulent transactions. As of October 1, 2015, a global POS counterfeit fraud liability shift went into effect in the United States, which holds that merchants that are not EMV certified are liable for any fraud resulting from a transaction with a customer in possession of a chip-enabled card.
If you would like to learn more about EMV and/or Petroleum Processing Solutions, contact us at (800) 451-4021.
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