April 15, 2015

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EMV Technology: What You Need To Know

EMV TechnologyWith the October rollout of EMV Technology for retailers and merchants much has been publicized about compliance and the shift of liability on to retailers for accepting fraudulent cards instead of the card issuers themselves. The most important thing to note–after October 15 the liability will shift to the merchant if fraud takes place at your establishment. However, two important pieces must be considered–1) you are liable if you do not upgrade your hardware to EMV compatible technology AND 2) you are liable if the fraudster uses a stolen card that has an EMV chip and you process it via the swipe method.

So what does that mean? Well it’s going to take a long time for EMV cards to roll out nationwide from card issuers. In fact, estimates say it could be well into 2018 before 96% of cards are EMV compatible. So from that respect, you have some time to get compatible. And also, remember that small restaurants are usually not hot beds of fraudulent activities by crooks. So though it it possible for someone to use a stolen card at your restaurant, and eventually you will bear the liability, it may not be for thousands of dollars. However, if it happened frequently the dollars could indeed add up, so it is well worth it to spend a few hundred dollars to upgrade your hardware to EMV technology.

American Express is offering merchants $100 gift cards right now to get them motivated to upgrade their systems. More details about that promotion by clicking here.

Need more information on this topic? Give us a call–we are happy to walk you through the ins and outs and answer any questions you might have about EMV technology and how it might affect your small business.

November 24, 2014

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EMV Technology Q & A

In several upcoming blogs we will be sharing some very important news about EMV (European Mastercard Visa) Chip Technology with our restaurant customers and prospects. Have more questions? Leave them in the comments section below.

Thank you to Chase Paymentech for this valuable information.

What is EMV?
EMV chip technology is becoming the global standard for credit card and debit card payments. Named after its original developers (Europay, MasterCard® and Visa®), this smart chip technology features payment instruments (cards, mobile phones, etc.) with embedded microprocessor chips that store and protect cardholder data. This standard has many names worldwide and may also be referred to as: “chip and PIN” or “chip and signature.”

What is chip technology?
Chip technology is an evolution in our payment system that will help increase security, reduce fraud and enable the use of future value-added applications. Chip cards are standard bank cards that are embedded with a micro computer chip. Some may require a PIN instead of a signature to complete the transaction process.

Why should I invest in chip card acceptance now?
Preventing the growth of fraudulent activity is one of the main reasons the industry is moving toward EMV technology. Chip cards make it difficult for fraud organizations to target cardholders and businesses alike. As a result, more and more chip cards are being introduced by U.S. financial institutions in order to support and switch over to this technology.

How is a chip card different from a traditional payment card? A chip payment card looks just like a traditional card with an embedded chip in addition to the standard magnetic stripe on the back of the card. What you see on the card is not the actual microchip but a protective overlay. The microchip provides an additional level of authenticity for the transaction.

What do I do when a customer presents a chip card?
Chip cards will still have a magnetic stripe during the U.S. migration to EMV to ensure that customers can continue to pay until all merchants have been given the time to upgrade their equipment.

How does EMV chip technology work?
Your EMV-enabled device will communicate with the chip inside the customer’s smart card to determine whether or not the card is authentic. Generally, the terminal will prompt the customer to sign or enter a PIN to validate their identity. This process enhances the authentication of both the card and cardholder, effectively reducing the possibility that your business will accept a counterfeit card or be held liable for a fraud-related chargeback.

Will I still be able to accept traditional credit and debit cards?
The Future Proof terminal has a magnetic stripe swipe reader and you can continue to accept payment cards that are not chip-enabled.

Chip cards will still have a magnetic stripe during the U.S. migration to EMV, to ensure that customers can continue to pay until all merchants have been given the time to upgrade their equipment.

Check back for more valuable EMV Chip Technology Q & A next week!