Every day there is increasing awareness of the EMV chip in new credit cards from both consumers and business owners. However, many questions still persist without much clarity. We’ve found from speaking to local business owners, it seems EMV is about as understood as a 2nd level Calculus class to most people.
Below are the top ten questions most small businesses are asking:
What does EMV stand for?
EMV is short for EuroPay MasterCard Visa.
Why are we transitioning to EMV?
Card data security. EMV will reduce card fraud and counterfeiting making for a much better payment experience for merchants, customers, banks, card issuers, and acquirers.
When is the Deadline?
October 1st 2015.
Will many of my customers be paying with an EMV card?
Yes. Banks and Card Issuers are supplying their cardholders with new cards throughout 2015 to replace the previous standard credit and debit cards. These entities are also educating cardholders of the security benefits they have through these updated smart chip cards.
It is estimated that 575 million EMV cards are being issued. As a business owner, you are trusted in protecting your customer’s card data. Accepting EMV cards shows your customers that you care about their security.
How will I know if the customer is paying with a Smartcard?
The credit or debit card will have a small metallic chip towards the corner of the card.
What happens to my business if I use my old credit card terminal and do not upgrade?
The liability shifts to YOU, the business owner.
What do you mean by the liability shifts to me?
As of October 1st, if a customer wants to pay at a business with an EMV card in a “card present scenario,” and you run the card only using the magnetic stripe, you hold 100% liability for any fraudulent activity including data breaches or disputed transactions from stolen or counterfeit cards.
Businesses not EMV-ready could face significantly higher fines than ever before if a data breach were to occur.
Do I continue to swipe the magnetic stripe?
No, the entire card is inserted into the designated slot where the chip is read.
What if the card is not present?
Businesses will continue to run card not present transactions in the same manner that has been previously used.
What credit card terminals will accept EMV?
Countertop terminals include the Verifone Omni VX520, PAX S80, Ingenico ICT220 / ICT250, FD130.
Pin pads can also enable this feature. Some of the more popular pin pads are the Verifone VX805 and First Data FD35 and FD40.
The wireless terminals that accept EMV are the First Data FD410, PAX S90 and Verifone VX 680.
If you use a POS system, please consult your provider on what adjustments will need done to make your system EMV compliant.
True Merchant can making upgrading to EMV simple for any business, no matter the size or location. If you have further questions or are interested in more information, please contact us and we will be glad to help!