Reflecting Back on the EMV Transition

EBTLast October, businesses were mandated to adopt EMV compliant terminals. The EMV shift has already occurred in every major American market. Some businesses have not adopted EMV terminals due to cost or supply shortage. While the transition might not have gone smoothly, many businesses have successfully implemented EMV terminals. Many large companies have already made the shift such as Home Depot, Walmart, Target and Walgreens. Here is a quick run down again of what is an EMV card and why your business should adopt EMV compliant terminals.

Originally started by Europay in the mid-90s, the goal of EMV is to introduce smart cards to deter credit card fraud and provide a global infrastructure from credit card usage. EMV cards create a consistent transaction process world wide between card users and merchants.

But what is a “smart card”? A “smart card” is very similar to any other credit or debit card except for the inserted micro chip that processes the transition rather than a traditional magnetic swipe strip on the back of the card. The micro chip creates a one time password to protect the security of each transaction. Rather than swiping, users simply “dip” their card chip into the reader and the transaction then processes. Ultimately, the goal is to reduce “card present fraud” as well as “non card present fraud” for the consumer.

The main reason to adopt an EMV compliant terminal is because of a shift in fraud liability. Unlike the past when banks have been liable for fraudulent charges, merchants who do not have an EMV compliant terminal will now be liable for fraudulent charges if a magnetic strip transaction method is used. If your business does not have an EMV compliant terminal, you could be on the hook for fraudulent charges.

There have been concerns over the implementation of EMV terminals by industries such as restaurants, and other tip based services. While the EMV transaction model can create an awkward situation, such as adding a separate transaction for the tip, the benefits of liability protection far out weigh the possible awkward situation.

At Cynergy Data Texas, we can help your business become EMV compliant if you are not yet. The EMV transition did not go as fluidly as predicted, however, your business still needs an EMV compliant terminal to avoid excess fraud liability. If you are a gas station owner, you will be mandated to be EMV compliant by 2017, so the time is now to keep your business ahead of the curve. If not, don’t let your business be sunk by fraud liability! Contact us today for more information