Right now, EMV is a big topic and there’s lots of confusing information to process. On this page, you’ll find the facts you need to know, clear and simple. And if you want to know more, we have that here, too. EMV payment technology is already used all over the world and countries that have adopted EMV are proving the technology to be highly effective in reducing credit card fraud.
EMV credit cards are identified by a metallic chip that stores payment information and is used in place of the familiar magnetic strip. This chip is smart, secure and virtually impossible to duplicate. Here’s how it works: during a transaction, the chip secretly and securely passes data to an EMV payment device using a unique, one-time code that cannot be used again. If the card is illegally duplicated, the code will have already been used, signaling that the card is fraudulent.
Using an EMV-enabled device protects your business from financial loss due to credit card fraud. Prior to October 1st, 2015, banks reimbursed cardholders for fraudulent activity that happened on their card. However, after October 1st, this financial burden will fall on merchants who do not have an EMV-enabled device. This could add up to significant expenses! But don’t worry, as long as your business is equipped with an EMV-device provided by TSYS, you’re covered.
EMV is a tiny, metallic computer chip on credit cards. Lots of cards today have both a magnetic strip and a chip, but only the chip is EMV. To use the chip, the card is inserted into a slot on the terminal rather than swiped.
EMV transactions are more secure, making fraudulent EMV transactions much more difficult. As a customer, you should use EMV in order to protect your private and sensitive information (such as credit card number and billing information). As a merchant, you should process EMV transactions to help protect your business from becoming liable for fraudulent transactions.
Cybercrime is at an all-time high and the United States has been a target for fraudulent activity. This motivated card issuer companies (such as Europay, MasterCard and Visa, the original founders of EMV) to develop a more secure payment method. In order to encourage everyone to use the most secure technology available, liability for fraudulent transactions will land on the party who uses the less secure technology.
Yes, if the card does not have a chip, it is safe for you to run the transaction with the magnetic strip. In such a case, you will not be held liable for accidently processing a fraudulent card. You are only in danger of becoming liable when you process a fraudulent card with the magnetic strip when the EMV chip was an available option.
First, you must make sure your payment device is EMV-capable. Contact your TSYS sales representative to discuss your options for upgrading to an EMV-compliant terminal. Once you have an EMV-capable device in your hands, processing EMV chip cards isn’t all that different from swiping a card: just insert the EMV card (chip side up) into the slot of the device, leave it there while it processes, then remove it when prompted.
EMV is for card-present transactions only. Payments that are keyed-in or done through e-Commerce or MOTO will not be affected by the liability shift. In other words, merchants will not be liable for fraudulent card activity in a card-not-present transaction.