by Guest Blogger - Trevor Mast, SVP of Financial Services, FIS
What does EMV stand for?
EMV™ (“Europay, MasterCard, VISA”), is named for the three companies which originally created this new standard in payments technology. It is currently managed by EMVCo, a consortium with control split equally among VISA, MasterCard, JCB, American Express, China UnionPay, and Discover.
How can I stay on top of what’s going on with EMV?
FIS, a member of the St Pete Chamber, is at the center of much EMV migration activity. Serving both financial institutions and retailers, FIS publishes PaymentsLeader.com, a thought leadership blog on topics such as EMV. Check this site regularly for updates and additional information.
How does EMV work?
EMV is a technical standard for “smart” payment cards - and for the POS (point-of-sale) terminals and ATMs (Automated Teller Machines) which accept them. Also called chip cards, these cards store data on a small chip on your payment cars - an “integrated circuit” – instead of using the magnetic stripe. In the U.S., chip cards will continue to have magnetic stripes, so they can be used with merchants that have not converted to a chip-enabled device. Chip cards can be “contact cards”, which must be inserted (or "dipped" – hence the phrase “Chip & Dip”) into a reader, or “contactless cards”, which can be read over a short distance using NFC (Near Field Communication) technology.
You’ll also hear people using phrases like “chip-and-PIN” or “chip-and-signature” cards, depending on the type of authentication the issuing banks requires to use them. In Europe and most other parts or the world, chip cards – both debit and credit – are used with a PIN. In the U.S., concern over requiring cardholders to select and remember yet one more PIN, has driven the market to chip-and-signature as the default.
What does it all mean to me?
Whether you work in retail or in banking, your world is changing at a rapid pace. October 1, 2015 has long been a red-letter date for over a year, because of the liability shift that occurred that day. In most cases, retailers who have not enabled their POS terminals to accept and authorize chip-card payments now bear the responsibility of covering the cost of any fraudulent transactions. Banks and credit unions have been under the gun to reissue millions of cards, to put the technology in the hands of their cardholders, while merchants have been furiously upgrading their POR devices
There are a few exceptions to this. For example, the liability shift does not apply to AFDs (Automated Fuel Dispensers) until October 1, 2017. For ATMs, the shift occurs in 2016 for MasterCard, but 2017 for VISA.
Does this put an end to card fraud?
It would be nice if this were the silver bullet that eliminated fraud. Unfortunately, fraudsters are a clever and resilient bunch! While card-present fraud may see a decline over time, this simply means that fraud will migrate to the weakest link: card-not-present (online and over-the phone) transactions. DO not let your guard down. Everyone must continue to be vigilant in protecting transactional and personal data.
What should I do if I have a POS that is not EMV-enabled?
Contact your transaction processor immediately to discuss your options. Ultimately, it is your choice to upgrade terminals to EMV or not, but you want to make an informed decision, due to the increased exposure to your bottom line if you process fraudulent transactions. FIS is able to provide our merchants with access to a wide range of point-of-sale options. We feature renowned VeriFone and Ingenico products, with models that include functionality capable of accommodating every level of merchant needs. These solutions fulfill countertop, wireless and mobile needs, and include EMV/chip card capability, Near Field Communication (NFC) technology and more. For information about FIS Merchant Processing and EMV equipment, please contact email@example.com
To find out more about FIS’ chip-card products and strategies, contact firstname.lastname@example.org.