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What is EMV Compliance?

July 17, 2015

The Nationwide shift to EMV, but just what is Chip Card Compliance?

EMV (Euro MasterCard Visa), also known as chip cards, or smart chips—is becoming the global standard and refers to all the new credit cards coming out with the computer chips embedded in the card. You may even have a couple in your wallet as we speak.

The U.S. has been migrating towards this technology for several years, while Canada and Europe have already been implementing chip card technology for more than a decade, with approximately 30 other countries following suit. In fact, if you are travelling overseas, your magnetic stripe may not be viable when it comes to making purchases.

Why is the conversion necessary?

Swiping the magstripe has been the norm since the inception of credit cards, but it has become an increasingly insecure way to process your payment. Hackers have a much easier time accessing your sensitive data from magnetic stripes via skimmer devices, and other methods. You hear about large corporations in the news, like Target, Albertsons and Home Depot experiencing security breaches. Target even admitted that if they had newer equipment, the breach probably would not have occurred. Target now faces a resulted loss in business from lack of consumer trust. What you don’t hear about is the incidents that occur in small to mid-sized businesses, which makes up 95% of the breaches! Target, Albertsons and Home Depot will undoubtedly recover, but a security breach could cripple the smaller business owner.

With credit card fraud being the #1 crime in the world, it is more important than ever to take your security to the highest level, and the U.S. is finally mandating chip card technology with their October 1st, 2015 deadline. EMV encrypts and stores cardholder data in the computer chip, which makes it harder for thieves to break in. In addition, every time the consumer uses their chip card, it generates a unique code, which shortens the hacker’s window of opportunity.

Why is the October Deadline important?

After October 1st, 2015, fraud liability shifts to the merchant if you are not compliant because you are still using older equipment.

Contact US today to find out more about the Merchant’s responsibility when it comes to EMV compliance.

 

 

 




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