The days of “swipe and sign” sales are coming to an end
25 years after it’s debut, the U.S. is finally getting on board with EMV, also known as chip & PIN cards, the global standard for secure payments. EMV (Euro, MasterCard, Visa) affects all entities involved with credit card acceptance.
Why is EMV needed?
U.S. card issuers have historically provided consumers with cards utilizing a magnetic strip. Unfortunately, this antiquated technology allows for credit cards to be easily replicated leaving businesses and cardholders susceptible to fraud and monetary losses.
To combat fraud, credit cards are now equipped with a “smart chip.” The chip is tamper proof, making it nearly impossible to clone. In a face-to-face (card present) transaction, with EMV’s use of dynamic authentication, each transaction carries a unique ‘stamp’ which makes the transaction data virtually impossible to be fraudulently reused.
Change is already taking place: U.S. card issuers have already begun to issue new chip embedded cards to their cardholders in preparation of the upcoming changes.
Fraud Liability Shift
The card brands have established a road map with a deadline of October 2015 for EMV implementation which includes a “liability shift.” Fraud liability will now shift to the entity that has the lesser technology to bear the liability. So if you are using an EMV compliant terminal but the customer’s bank has issued a chip embedded card, the card issuer will bear the financial loss of the chargeback.
How does it work at the point of sale?
When cardholders shop at a business using an EMV compliant terminal, they will simply need to either insert their own card or tap their card. The credit card will never leave the customer’s hand preventing the risk of employee fraud.
What this means for businesses
Responsibility: Card present businesses need to make sure that they have EMV compliant hardware and/or terminal before the October 2015 deadline to reduce their fraud liability.
Benefits: More secure card present transactions, reduced fraud liability, and participation in a global standard of payment card acceptance.
How can AxiaMed help your business prepare for EMV?
As Visa & MasterCard require support for chip & PIN cards before the end of 2015, our cloud-based solution is your answer for supporting EMV. With AxiaMed’s solution, your software can easily integrate with an EMV / chip & PIN capable payment terminal in order to process chip embedded credit cards. Our solution minimizes the scope of our client’s PCI audit by removing the desktop/workstations from the payment data ecosystem. AxiaMed provides added payment security by encrypting data at the time of swipe or key entry. Additionally, all data is transmitted over HTTPS ensuring that credit card transactions have a dual layer of security.
Complete the form to have one of our representatives contact you for assistance with evaluating your EMV compliance.