Top 3 Ways EMV Can Keep Your Business Safe
It was recently announced that Revel is embracing chip and pin standard, or EMV, through its partnership with Adyen. But what is EMV, and what does it mean for your business? According to Wikipedia, EMV stands for “Europay, Mastercard, and Visa” and is meant to “ensure the security and global interoperability of chip-based payment cards.” This all sounds great, but what does this mean for your business, and for your customers?
Put simply, EMV is a more secure way to pay. Instead of customers merely swiping their cards at checkout–which opens them up to credit card skimmers and other forms of data theft–customers must also enter in a pin to accompany the scanned card. This sounds a lot like a debit card transaction, and indeed is very similar, except that EMV-enabled POS systems employ “cryptographic algorithms such as DES, Triple-DES, RSA and SHA provide authentication of the card to the processing terminal and the card issuer’s host system.” EMV is currently an international standard, but will be a requirement for merchants in the United States by 2016.
This may sound complicated, but here are three things to keep in mind when considering what EMV does for your business:
Avoid fines: By 2016, all merchants in the United States will be required to have EMV-enabled terminals and hardware. Those who don’t update their POS systems will be subject to prohibitive fines for not being PCI Compliant.
Keeps your customers safe: As mentioned above, the use of EMV technology prevents various forms of data theft, including card-skimming. The customer identifies himself by entering his pin, therefore ensuring that he is authorized to use the card. Further ensure customer data is protect by using a POS system with payment encryption.
Protects your business: Because customers enter their pin when their card is scanned, the financial burden in the event of fraud is on them, not you. As Wikipedia notes, “For transactions in which an EMV card is used, the cardholder is assumed to be liable unless they can unquestionably prove they were not present for the transaction, did not authorize the transaction, and did not inadvertently assist the transaction through PIN disclosure.” Because the transaction requires a PIN to take place, it is up to the customer to protect his credit card information, thereby freeing you business from legal culpability in the event of fraud.
There you have it–EMV may sound complicated, but in all reality it is an excellent way to protect both your customer and yourself from fraud, fines, and credit card skimming.