EMV Is Coming In October…Are You Ready?
Beginning in October of 2015, the liability for payment-card fraud will fall to the transaction party – card issuing bank or retailer – that has the lesser technology. For retailers, this means being prepared with hardware that is designed with “smart chip” technology. With this technology in place, retailers will be able to seamlessly accept payments from the new chip-enabled payment cards that are already being issued by major banks.
With proper planning, retailers can “future-proof” their point of sale and payment processing systems, from a liability standpoint as well as respond to the coming shift in how consumers will pay for merchandise and services.
To help with your hardware planning, we have put together a quick FAQ.
FAQs for EMV
- What is EMV? EMV stands for Europay, MasterCard and Visa, which were three of the original institutions behind the change in credit card technology. To help reduce card fraud, EMV-enabled credit cards and credit card machines utilize a microchip in addition to the traditional magnetic strip. American Express and Discover are also partners in the EMV movement.
- Is this new technology? EMV technology has been in the works for over a decade. It’s adoption as been widespread outside of the U.S., particularly in countries with traditionally high rates of credit card fraud.
- Are banks participating in the adoption of EMV? Banks are the other party facing this “liability shift” starting in October; they have just as much motivation as retailers to make sure they are up to current standards. As such, you yourself may have already received an updated credit or debit card from your bank with a microchip implanted.
- Does my current hardware not support EMV? A few companies have already gone to market with credit card hardware that is EMV-ready, but that has only been very recently. If you are not sure if your hardware is EMV-capable, please contact your Celerant sales representative or email us at EMV@celerant.com for more information.
- If I upgrade my hardware, will I still be able to “swipe” cards like I always have? Yes. New EMV-capable cards issued by banks will still have the magnetic strip for traditional swiping to complete a transaction. New EMV-capable hardware will also be able to accept cards with a magnetic strip.
- What happens if my business is not EMV-ready by October? Your business will still able to process card payments via “swiping” as it always has. But keep in mind that you could be on the hook for card fraud, if it is determined that you were the party with lesser technology.