EMV stands for Europay, Mastercard, Visa, and is taking the lead in credit transaction security. At its simplest, it is a technological advancement in credit cards that implements a microchip instead of a magnetic stripe, providing stronger security for a reduction in fraudulent transactions. These fraud-preventing microchips can reside inside a payment card, a fob, or a mobile device. Regardless of the form factor, the chip technology adds one of the most important payment transaction benefits – enhanced fraud protection. Whether the payment card is inserted into the chip-enabled slot reader (contact) or waved above the device (contactless), the data on the chip ensures the card is authentic, and the PIN or signature ensures that the person presenting the card is the rightful cardholder. EMV microchips are virtually impossible to counterfeit. Even a lost card is unusable without the PIN number.
Advances in technology always lead to equipment upgrades. How many times have you bought a new phone or computer because the technology was more advanced, faster, or safer? Accepting credit cards is a business expense, and so are the equipment upgrades. While you are not required to accept chip-based transactions, you gain powerful advantages when you do. By updating your POS system to accept contact and contactless chip payments, you are taking steps to build a future-proof infrastructure that will support emerging payment innovations and reduce risk.
Migration to the EMV technology in the U.S. will help:
Ensure that only the rightful owner can use the chip card, protecting against lost or stolen card fraud
Protect data on the chip against unauthorized changes, minimizing the chance of counterfeit fraud
Enable U.S. cardholders to use their secure chip cards anywhere in the world
EMV deployment in the U.S. is estimated to eliminate 95% of lost/stolen credit card fraud. By October 2015, merchants’ equipment will need to be updated in order to accept payments from EMV cards. If the equipment isn’t updated, the company could lose out on business and/or be held liable for any potential fraudulent activity. Businesses need to understand that liabilities will shift to the party who does not have the EMV technology, whereas in the past, responsibility fell on the banks and card issuers. Meaning, merchants can be responsible for any fraud that occurs from processing magnetic stripe cards and any fines.
Business owners should make sure their equipment is updated. When you shop at large scale retailers and box stores you will notice the changes are being made to their terminals to be ready for this shift in payment processing. Smart businesses are always looking for cost-effective ways to adopt new technology. With EMV capable terminals and peripherals, you can reach beyond PIN debit and future-proof your point-of-sale investment with all-inclusive consumer-facing device – it’s fast, flexible, and more secure.
Chip Technology Benefits:
Improve customer service and offer potentially faster checkouts
- Enables PIN transactions for both credit and debit cards, reducing the time needed to obtain a signature and the need for authorization referrals
- Supports contactless transactions which are approximately 53 percent faster than a traditional magnetic stripe card transaction.
Drive innovation in emerging consumer technologies
- Chip-based applications can be embedded into a mobile wallet, enabling consumers to pay via their mobile devices
- Chip technology works on the same contactless technology that also enables mobile payments at the POS
Boost loyalty and repeat business
- New equipment purchases open the door to adding emerging technologies such as two-way Near Field Communication (NFC) to push targeted offers to consumers’ via smart phones which can then be redeemed at the point of sale in a secure manner
- Providing added protection for your customers can drive improved satisfaction and help increase loyalty
Metro Merchant Services has many solutions and special pricing for purchasing or leasing EMV capable equipment. Costs and fees vary; we are confident we can work with your budget for a fitting solution. Call us today 800-771-3719.