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when inserted in the card reader or tapped for
contactless acceptance.
These chips are embedded in credit and/or
debit cards that also have a magnetic stripe,
and can be used at businesses that support
either type of payment card. You may have
already seen them, as card issuers have
started issuing chip cards to consumers.
So what's the big deal
about this EMV stuff?
A liability shift has happened. As of October
1, 2015, you could be liable for chargebacks
resulting from acceptance of lost, stolen or
counterfeit cards. Generally, liability for these
chargebacks will shift to the party using the
least secure technology. If you do not have an
EMV terminal installed and working, that could
be you.
Now let's explore how you can prepare.
Find out before you freak out
The liability shift deadline does not mean the
sun sets on your business's ability to accept
cards, and you'll wake up to a bleak day of
doom on October 2. There are options.
Start with doing some research. Check your
business analytics to assess how many
chargebacks due to fraudulent transactions
have occurred in the past several months.
Pretty clean record? That's good news. You
may have time to breathe and get EMV-ready,
even if it's not by the deadline.
Record not so spotless? You may want to act
with a little more urgency.
Note that EMV is not mandated either by the
card brands, federal or state governments.
But it is a good idea to consider migrating to
EMV to help you avoid costly fees and loss of
business due to customer preferences ahead
of the target date.
So why comply if it's not mandated? Besides
avoiding the costs due to fraudulent card
chargebacks, you will be providing security
and a more secure acceptance environment
for you customers. As more EMV cards are
distributed, consumers may prefer safer
purchase methods and may expect to dip
instead of swipe.
Due to the mass adoption and success of
EMV across the world, it is clear EMV isn't
going anywhere. Sixty-six percent of card-
present fraud in the U.S. is due to acceptance
of counterfeit cards by businesses like yours.
EMV is an effective security measure against
counterfeit cards, but it's important to
understand that EMV alone will not be enough
