Merchant's Quick Guide To EMV

Posted by Karen Erdelac on Dec 3, 2015

EMV (Europay, Mastercard, Visa)

As of October 1, 2015, merchants that are not using terminals that process EMV (Europay, Mastercard, Visa) chip card transactions may become liable for chargebacks associated with payments made with counterfeit cards or cards lost or stolen from their rightful owners.

How This Affects You and Your Business:

In the past, the customer’s credit card company absorbed these losses. But this “liability shift” from credit card issuers to merchants can represent significant losses to businesses that do not use solutions that enable their point of sale terminal to accept EMV chip cards.

  • EMV chip cards help protect merchants and consumers by making it very difficult to create a counterfeit card, or to use a lost or stolen card in card-present transactions.
  • EMV-enabled terminals can also accept payments from mobile devices equipped with a “digital wallet” such as Apple Pay or Google Wallet.  Accepting these payments offers greater convenience to consumers while further increasing transaction security.

How to Notify Your Customers of This Change:

  • You can place notification of the new EMV technology on your company’s website.
  • Email blasts can be sent out to customers who are in your database.
  • Point-of-sale signage can be used to explain the new EMV changes.
  • Receipts are a great way to let customers know what’s in store and that you are making their safety and security a top priority.

Merchant Benefits:

  • Stronger protection against counterfeit card fraud.
  • Reduced costs associated with chargebacks.
  • More secure payment options for cardholders.
  • Streamlines the transaction process.
  • Gives cardholders options on how they wish to pay.
  • More payment options means more profit for merchants.

EMV Overview:

  • Card Authentication. A unique one-time security code is generated by the card/terminal that is validated by the Issuer.
  • Cardholder Verification. Verifies if the person presenting card is the authorized cardholder via the use of a PIN or signature.
  • Transaction Authorization. Determines if the transaction falls within the risk parameters of the Issuer.

There are 3 Types of Cardholder Verification Methods:

  • Chip and PIN. Card is inserted into or tapped on the terminal and the customer inputs their PIN number.
  • Chip and Signature. Card is inserted into or tapped on the terminal and the customer provides their signature on the receipt.
  • No Cardholder Verification. Card is inserted into or tapped on the terminal and neither a PIN nor a signature is required.

Future Projections for EMV Technology:

  • 2016 is expected to see 900M chip cards issued up from 600M in 2015.
  • 2016 is expected to have 9M EMV terminals in operation up from 7M in 2015.

Apple-Pay Transactions:

  • An account is added to the Passbook app and a unique Device Account Number is assigned.
  • The device account number is encrypted and securely stored in the Secure Element (chip) on the I-Phone.
  • The device account number is used along with a unique one-time security code to process the transaction.
  • The last four numbers of the device account number will appear on the receipt.
  • On the receipt, the word “Proximity” indicates a contactless transaction.

Current EMV Terminal Solution:

  • Ingenico iCT250 Terminal.
  • Deployed from Sterling EMV-enabled.
  • Supports EMV chip cards and digital wallets.
  • Built in contact and contactless readers.
  • Class A certified terminal.

Terminal Solutions:

  • Verifone Vx520.
  • Ingenico iPP320.
  • Ingenico iWL250

iPOS Solutions:

  • Payment middleware solution to add onto PC, POS, or Tablet to provide EMV capabilities.

ECR Solutions:

  • Semi-integrated solution to connect to ECR and provide EMV capabilities.

EMV:

  • These EMV terminals can range in costs from $150.00 - $1,000.00. Quikstone Capital Solutions can help you with some of the fees associated with this new shift and answer any questions you may have.

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