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EMV and HOW IT AFFECTS YOU

October 3, 2015

Now that the October deadline for EMV compliance has passed, a surprising number of merchants still haven’t implemented the new chip technology. There seems to be a divide in the number of merchants who know about EMV, who have already switched to EMV, and who haven’t a clue what EMV stands for, or how it specifically affects them as a business owner.

Here are a few FAQs and simple answers to help merchants understand EMV:

 

WHAT IS EMV?

EMV stands for Europay MasterCard/Visa and is becoming the global standard for processing credit cards. In short, your credit cards are being replaced with ones that have microchips that store and protect sensitive cardholder data more securely.

HOW DOES IT WORK?

Chip Card Terminals have a slot at its base to insert the chip. Simply follow the prompts to complete the transaction. You still have the ability to swipe cards without chips.

WHY DOES IT WORK?

There are several reasons: A) Hackers have become highly adept at skimming sensitive information from magstripes, so much so that it’s child’s play for them. This puts cardholders and merchants in a more many precarious position from a fraud standpoint. B) It is more expensive and complicated to counterfeit the chips, deterring would be thieves. In addition, with the introduction of PIN/signature, hackers have too hoops to jump through to bother. C) The data is transmitted in a unique way every time the card is used, which transitions from static to dynamic and further protects the cardholder and merchant from fraud.

AM I REQUIRED TO SWITCH?

No. However, now that the October 1st deadline has come and gone, there’s a shift in liability. Now, if you are still using old equipment that is not chip card compliant, merchants will be held responsible for any occurrences of fraud, since having EMV terminals could have prevented the act. While you are not required to switch, using older equipment puts you at a higher risk for a fraud occurrence, because hackers are now seeking out easier targets.

DO CHIP CARDS SOLVE THE FRAUD ISSUE?

While chip cards have made great strides to drastically reduce “card present” fraud, hackers now migrate towards online sales, so buyer beware! Additionally, businesses that do a higher volume of “phoned-in” transactions where they have to punch in the numbers, remain at a greater risk and higher rate.

 

KOIN TV recently ran a story on EMV and featured Riverside Payments click this link to watch the video and learn more: http://koin.com/2015/09/30/chipped-credit-card-deadline-will-it-affect-you/

 

If you still haven’t switched to EMV, Riverside Payments is here to help. In just a few minutes, we will offer you a free quote that includes EMV compliant equipment, increases your security to the highest level, and significantly reduces your monthly processing rates.

Contact Riverside Payments to get started today!




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