EMV Credit Card Processing
What Are EMV Credit Cards?
The days of swipe-and-sign credit card processing are numbered. In the wake of large-scale data breaches and identity theft, both retailers and shoppers worldwide have begun demanding greater security.
Chip-enabled payment technologies developed by Europay, MasterCard and Visa (EMV), are replacing traditional credit cards.
At first glance, EMV credit card processing looks surprisingly similar to magstripe processing — but with one tiny difference. Cards now come equipped with a security chip, or smart chip, that must be scanned and authorized with each transaction. The chip interacts with the merchant’s point-of-sale device to make sure the payment card, combined with a PIN number or signature, is valid and belongs to the person using the card. This kind of chip technology adds layers of security against fraud and is virtually impossible to duplicate.
The end result is safer retail shopping (and far less credit card fraud). For additional information regarding EMV Credit Card Processing, please see some common FAQs here and continue to scroll through this page.
What is the October 1st, 2015 EMV liability shift?
The shift determines which party – either the merchant or the card issuer – will be responsible for the financial liability resulting from fraudulent counterfeit, lost, or stolen card-present transactions.
When is the merchant responsible?
If a consumer presents a chip card at a merchant that does not have EMV-enabled equipment, the liability for credit card fraud will shift to the merchant.
When is the card issuer responsible?
If a traditional magstripe card is presented at an EMV-enabled terminal, the card issuer will be responsible for any financial liability resulting from fraudulent transactions.
|Chip Capability:||Card Chip Capability: POS||Counterfeit Liability after October 2015 Lies with:|
|Magnetic stripe only card||Terminal not enabled for chip||Issuer|
|Magnetic stripe only card||Chip-enabled||Issuer|
|Counterfeit magnetic stripe card with track data copied from a chip card||Terminal not enabled for chip||Acquirer/Merchant|
|Counterfeit magnetic stripe card with track data copied from a chip card||Chip-enabled||Issuer|
How does it affect my business?
Although there is no government entity or authority mandating you to conform to the EMV requirements, it is important to realize the impact of this liability shift on your merchant account since the October, 2015 liability shift. By accepting EMV transactions, you benefit from an increase in security and fraud protection, while reducing your risk of losing, what could possibly be, an excessive amount of money if you include all of the chargeback and legal fees that may arise.
Retail Card Present (CP) Merchants
As a result of the October 2015 liability shift, merchants that do not use EMV-enabled point of sale (POS) equipment are now liable for card-present fraudulent transactions.
BluePay has partnered with Datacap to provide two options to accept EMV chip card payments for a variety of POS systems. These applications offer merchants a way to process chip card transactions through the BluePay Gateway and take full advantage of the robust features available.
1) NETePay™ an integrated EMV-enabled software solution. A downloadable version of the NETePay™ software is available for all new installations and current merchant upgrades. Click here to see a list of compatible equipment.
2) TranCloud™ a plug-and-play solution for mobile and browser-based POS sytems using a device which connects to a merchant’s network to facilitate the transaction process. Click here to learn more about the application.
Card-Not-Present (CNP) Merchants
If you think that EMV has nothing to do with you, think again. Card-not-present (CNP) merchants will see a rise in fraudulent transactions as thieves migrate towards least secure channels.
“In the United Kingdom, online fraud -- known in the industry as ‘card not present,’ or CNP, fraud -- rose 79 percent in the first three years after the country switched to chip cards, and it more than doubled in Australia and Canada, according to Aite Group.” *
So how can you protect your customers and your business? Using AVS (Address Verification) and CVV (Card Validation Values or security code) are definitely steps in the right direction, but we highly recommend strengthening your protection with additional CNP tools available in BluePay’s full suite of robust fraud management tools. Set up your parameters in the BluePay Gateway and begin taking advantage of the benefits of having that extra protection on your merchant account.
*Source: www.creditcards.com, “Online fraud may surge after EMV chip card rollout,” November 19, 2014