Everything Your Business Needs To Know About EMV
Despite slow-moving adoption in the US, EMV technology has been widely adopted in other regions, such as Europe, Canada, Latin America, Africa, and the Middle East. The disparity in adoption rates can be attributed to the fact that businesses in the US were not incentivized to adopt EMV technology until 2015.
A study surveyed US adoption after one year since the standard took effect, and found that 44% of US card-accepting merchants have EMV terminals and that 29% of merchants can accept chip-based transactions. While 2016 was a sluggish year for adoption, a Business Insider study forecasts that US EMV adoption and usage will grow significantly in 2017.
As the US moves from a transitional period to high growth adoption, here is what your business needs to know about EMV:
What Is EMV ?
The Europay, MasterCard, Visa (EMV) standard, founded by EMVCo., is a global standard for credit cards that use microchips to authenticate transactions. The EMV processing standard encompasses specifications, test procedures, and compliance processes that have dramatically reduced the exposure of businesses worldwide to data breaches and fraudulent activity.
What makes it more secure?
Eitan Harari, Revel Systems Payments Relationship Manager, explains how the chip is bolstering security. “The chip encrypts each payment with a unique transaction code which is tied to the card user’s profile, enabling real-time risk assessments. The point-to-point encryption makes sure that card data never has to enter the Point of Sale, reducing the likelihood for data theft and card-skimming.”
What effect has EMV had on fraud?
The enhanced security from chip technology has shown a drastic reduction in credit card fraud. Mastercard found that over a year period, there has been a 54% decrease in counterfeit fraud costs at retailers who either completed or are close to completing EMV transitions. Conversely, for merchants who have not adopted EMV, their counterfeit fraud costs were up 77% year over year.
Eitan states, “Fraud prevention should be at the forefront of your security strategy. The cost of non compliance can be huge; both financially as well as the increased risk of tarnishing your business’s reputation and losing customers.”
What is the EMV-fraud liability shift and how does it affect your business?
Since the adoption of the EMV standard in the US (October 2015), merchants that do not accept EMV cards are now liable for certain types of fraud and absorb the cost of the chargebacks as they relate to EMV.
What does this mean for businesses? “Prior to the EMV-fraud liability shift, the credit card companies accepted the liability. But as of October 2015, the liability for fraudulent chargebacks fall on the business owner if they are not meeting EMV standards.” Eitan says.
How can you become EMV compliant?
Revel is offering an EMV solution with our integrated payments gateway partner, FreedomPay. This solution offers both a stationary (iPP350) and mobile (iCMP) Ingenico pinpad to support your business with EMV, with more EMV solutions to come. If you have further questions or would like to inquire how you can purchase an EMV ready payment terminal for your Revel POS, you can contact us at (415) 744-1433, or email us at email@example.com.