EMV Migration. Are You Ready?
By: Valeria Rodriguez
In the past months, EMV (integrated circuit cards a.k.a. “chipped” cards) technology adoption has managed to become a mainstream topic of conversation. A technology that has been in use throughout Europe for nearly a decade now brings the promise of better security practices to more consumers.
Small Chip, Big Security
EMV chip cards can be identified by their embedded chip—essentially a tiny computer. It’s harder to replicate a chip card than a magnetic-stripe card as the chip creates a unique impression every time it is used. The technology is already in use in 80 countries. The payment card issuers, who have financed the development of the standard, decided EMV could wait but with massive, high profile consumer card breaches on the rise and $5 billion in payment card fraud in 2014, they are done waiting.
What’s the difference?
- New cards. Consumers payment cards will be reissued in masse over the coming months. The chip stores encoded user credentials, making them impervious to card skimming or cloning.
- Dip, not swipe. A costumer inserts his card into the card reader and leaves it for 10-15 seconds.
- Two -step transaction processing. Card validation and payment approval happen in separate, consecutive software processes.
What actions do I need to take?
There are several things that you should do now to prepare your business for the EMV transition and accompanying liability shift:
- Contact your card processor and/or point-of-sale provider to discuss upgrading to terminals that accept chip cards.
- Determine what else your business needs in order to become fully EMV compliant and avoid the increase in fraud liability.
- Train your employees on chip cards, and be prepared to train your customers.
It is not mandatory for retailers to upgrade your point of sale terminals to ones capable of reading chip cards—if you do not upgrade, your customers will still be able to swipe their cards at your business as they currently do.
However, starting in October 2015, businesses that don’t accept chip card transactions may be responsible for any resulting counterfeit fraud.
About the author: Valeria is in charge of online marketing and sales at ChicagoPOS Systems.