Consumer Guide to EMV

Breaking Down EMV for Consumers

The United States may be one the last developed countries to migrate to an EMV-based payments infrastructure, with a card network-imposed liability shift going into effect on October 1.  However, a recent MasterCard survey says that 57 percent of American consumers are excited for the change and are anxiously awaiting their EMV chip cards to come in the mail.  The recent data breaches in the news have undoubtedly contributed to the anxiety. 

The payment processing industry is excited too.  Not just about launching a new product, but about the safety and security that comes with it.  But while the payment processing industry is making major strides in protecting consumers and merchants, cyber-criminals have become more sophisticated, frequently accessing sensitive payment information. So, what can consumers and merchants to combat these cyber-criminals?  First, you have to understand EMV and the benefits of this technology.

Below is a compilation of frequently asked questions, so that our customer’s customers understand EMV and the impending change.

What is a chip card?

A chip card is a plastic credit or debit card with a metallic, embedded microchip that can be used on chip-enabled POS (point-of-sale) terminals. In addition to a small computer chip, a magnetic stripe can also be found inside the card.

What is EMV?

EMV is short for Europay, MasterCard and Visa- the credit card companies that developed smart card technology. This payment system is the international standard for secure inter-operation of chip cards. Regulations help authenticate credit and debit card transactions made on POS terminals and ATMs.

How does using an EMV chip card keep me safe?

EMV chip cards keep consumers safe by generating a unique transaction code every time a payment is made. If a hacker steals your financial data through an unsecure POS terminal, he or she will not be able to use the card without producing a one-time code. Because of this, EMV technology is not designed to proactively ward off security attacks. Instead, the release of upgraded chip cards makes it incredibly difficult for criminals to steal personal payments information. In countries where EMV compliance is widespread, fraudulent credit card activities have dropped considerably.

Where can I use my chip card?

Chip cards are becoming the standard for merchants and businesses in the US. Establishments with a chip-enabled POS terminal can accept EMV credit or debit cards. It is important to take note that chip cards will still work on magnetic stripe POS terminals. For stores that do not accept chip and PIN payments, you will need to confirm your purchase through the traditional signature process.

How do I use an EMV card for in-store purchases?

Chip cards are easy to use compared to current card-swiping protocols. During a transaction, individuals are required to insert the smart card directly into the terminal. This process is also known as ‘card dipping‘. The action is much easier to master than a smooth swipe, and less effort is needed. Card dipping increases the chances of a successful reading due to direct contact between the chip and the POS terminal.

What will happen after the October 1, 2015 deadline passes?

All merchants in the U.S. must comply with the latest EMV standards by October 1, 2015. However, this doesn’t mean that most businesses will be equipped with chip card readers. Investing in a new POS system is costly and many merchants are holding out until the last possible second to make the switch.

It’s going to be extremely hectic and busy from now until the October deadline.  We, at Chosen Payments would recommend you replace your old cards with the new chip cards as soon as possible to ensure a smooth transition.

If you would like more information on EMV or if you have a topic you would like to see addressed in a future blog, contact us!

Zach Allen Regional Vice President at Chosen Payments
Credit Card Processing | ACH | Gift/ Loyalty Cards | Mobile & Ecommerce Payments | ATM
Toll Free: 1.855.424.6736 x. 116
zach.allen@chosenpayments.com  |  www.ChosenPayments.com 
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