The term ‘EMV’ has been thrown around a lot in the payment processing world lately. The acronym stands for Europay, Mastercard, and Visa, but the three-letter word has become an umbrella for any transaction involving the new credit card chip technology.
What does ‘EMV’ mean to the average consumer?
The new chip-card technology was created and implemented to protect consumers from data breaches. The silver, square chip that you see on newer credit and debit cards is literally a computer chip that transmits unique data back to the financial institution during each transaction. This makes it much more difficult for cybercriminals to obtain the transaction data and use it again. Because the chip transmits unique data during each transaction, any stolen information cannot be replicated for future use.
With the more dated magnetic stripe cards, identical information is transmitted during every transaction made, making it much easier for hackers to both steal and utilize the payment data.
Unfortunately, data breaches are not slowing down, but chip cards are more effectively preventing stolen data from being used.
What does ‘EMV’ mean for merchants?
For merchants, chip-card regulations have already had massive impacts. Mastercard, Visa, Discover, and American Express instituted an October 1, 2015 deadline for merchants to become chip-card compliant or risk facing heavy penalties in the instance of a data breach. This means that any merchant with non-compliant point-of-sale operations would be held liable for consumer losses resulting from fraudulent behavior.
Basically, if you’re a merchant operating with a non-compliant POS terminal, you are forcing your customers to use their magnetic stripe as opposed to their card’s chip, allowing hackers to obtain their information and replicate it for future use.
The Future of ‘EMV’
Chip cards are not going away, and you can expect them to become more and more prevalent in the months and years to come. There are currently an estimated 7.2 million POS EMV-compliant terminals operating in this country, and CPI Card Group estimates 77% of all U.S. credit cards are operating with chip-technology.
You may have noticed that chip-enabled credit cards are being released faster than their debit card counterparts. But fear not – chip-and-PIN cards will soon become standard for all cards in the U.S., as they already are in Europe. The U.S. is the last major market still using magnetic stripe cards.
Get Compliant with Compliant Processing Today
Not only is EMV/chip-card technology not going away, the liabilities for companies operating with non-compliant terminals will increase and credit card issuers may add on more penalties the longer you continue to put consumer payment data at risk. Not only are you putting your clients in danger, you are also paying a fee for each transaction made on a non-compliant terminal with a chip-enabled card.
Compliant Processing can assist you in optimizing your payment processing operations with our traditional and mobile POS services. We will even replace your non-compliant POS terminal for FREE with a contract fulfillment. Additionally, you can add on our PCI compliance package for a minimal monthly fee, giving you peace of mind that you and your customers are fully protected from harmful data breaches as you avoid non-compliance fees.
Don’t wait any longer. Speak to a Compliant Processing compliance expert today.