If your business accepts debit and credit cards, you know that the world of payment transactions is constantly changing. You’re probably concerned with the safety of your customers’ personal information, as well as the financial stability of your business.
For a more in-depth look at EMV chip cards and why you should make sure your business can accept EMV cards, read on.
With EMV chip card technology, new standards make payment processing more secure, for both consumers and your business.
What Exactly is EMV Chip Card Technology?
EMV stands for Europay, Mastercard, and Visa. It’s the technical standard for smart payment cards, ATMs, and payment terminals that enhance transaction security. Compared to other cards that use a magnetic data stripe during a payment, EMV chip cards rely on dynamic digital data.
This means, when a customer inserts an EMV chip card into a point-of-sale machine, a unique transaction-specific encryption occurs. Because account data is carried in the embedded electronic chip in the card, the information is less likely to be stolen, from the card itself or from the machine that is reading it.
EMV chip cards are also harder to counterfeit. With magnetic stripe cards, thieves could steal a card from the mail or from a person, or even scan magnetic stripe data through wallets and purses. While magnetic stripe card data can be scanned and applied to multiple new credit cards for thieves to use, this isn’t possible with EMV cards.
EMV Helps Prevent Fraud
It’s true that the actual payment process may take a few seconds longer with EMV cards, but the decrease of card fraud is worth it. Also, many chip cards use near field communication technology, allowing customers to pay in a contact-less way that doesn’t require dipping a card in a machine. The card is read through radio-frequency identification technology, allowing consumers to tap and go.
The EMV chip standard on debit and credit cards has been adopted by more than 80 countries. In some countries outside the United States, all credit and debit cards and card readers must be powered by EMV chip card technology.
In the United States, banks are now issuing only EMV chip cards, though these cards are “backwards compatible.” Meaning, if a customer goes to a business that does not yet accept EMV payments, they’ll still have a stripe on their card that can be used for purchasing.
EMV Liability Shift
If you’re a merchant who is still hesitant to update EMV chip card technology, know that if your customers have EMV chip cards but you’re still swiping their stripes, any fraud liability falls on you.
Conversely, if you have updated your equipment to accept EMV chip card payments, the liability is lifted. If the consumer doesn’t have a new card, or if your business is updated, the card issuer is liable. The Small Business Administration recommends all vendors use EMV card chip readers to provide protection against fraud and liability.
While EMV chip cards protect your business during in-person transactions, if you have an e-commerce store, there are still some dangers. “Card not present” transactions can still result in fraud, if a thief uses an EMV chip card to make purchases online. The good news is, any data that is stolen from an online transaction cannot be used to reproduce an EMV chip card.
To stay fully protected, it’s so important for your business to use online payment processing that is secure and encrypted. Partnering with a merchant services provider like North American Bancard safeguards your business.
EMV Not Yet Required, But Still Integral for Businesses
Adopting EMV chip card readers in your business is not currently a requirement, but you can only benefit from the protection they offer. For every fraud case, if a customer has an EMV chip card but you don’t have an EMV chip reader, your business loses money and risks unhappy customers. This will lead to a negative view of your company, hurting your reputation.
Even before fraud occurs, not accepting EMV transactions can negatively impact your business. A 2017 survey by Visa found 35 percent of consumers believe using chip cards is the safest way to pay.
With more than 50 percent of merchants enabled for EMV chip card technology as of July 2017, merchants and EMV chip card technology developers are now working on increasing the overall speed of payment processing.
Ensure Your Business Is Protected With North American Bancard
At North American Bancard, we’re excited about the evolution of payment processing technologies, like EMV chip card acceptance. We make sure our products satisfy the needs of merchants who want to improve payment processing for their customers, their sales associates, and their stakeholders. Learn more about the merchant services we offer here.