What is EMV?
There is a new credit card technology available to reduce fraud and merchants, protect issuers, and consumers against losses from the use of counterfeit and lost or stolen payment cards at the point-of-sale. It is called EuroMastercardVisa, also EMV. Embedded in EMV card is a microprocessor or smart chip that when inserted into a merchant’s point-of-sale device it does a live check to ensure that the payment card is valid and as a double layer of security PIN is required to validate that it belongs to the person using the card. These security measures that are new to US market are nearly impossible to replicate.
Why Introduce EMV?
The migration to EMV technology in the U.S. will help:
- Protect the card holder from fraud by ensuring only they can use their card.
- The data within the chip transaction uses tokenization thus protecting against unauthorized changes and protecting against counterfeit fraud.
- With Europe and much of the first world countries implementing EMV years ahead of the US, US cardholders will now be able to use the EMV features throughout the world.
What is the Timing for EMV in the U.S.?
EMV chip payments are active in the United States today. Since 2011, Visa, Mastercard, Discover, and American Express had roadmapped and implemented EMV technology abroad and made plans to introduce in the US. The deadline to become EMV compliant and not risk losing profits due to fraud or chargeback claims has passed. Liability shifts for Automated Fuel Dispensers and Automated Teller Machines begins in 2017. EMV rollout occurred in October 2015. Fortunately, even if you haven’t yet adopted these security measures to keep you or your clients safe, it is not too late to switch today.