To combat growing credit card fraud in the US, credit card companies have rolled out EMV (Europay, MasterCard, Visa) credit and debit cards. These “smart” cards are secured with an embedded silicon microchip to create a unique, one-time code for each transaction, replacing the traditional, fraud-susceptible magnetic strip cards.
As of October 1, any businesses who are unable to accept EMV cards, and banks who have yet to issue the new cards to their customers, are liable in the event of fraud. Since this deadline has recently passed, we’ll take a deeper look into EMV cards and the impact they will have on retail and on consumer information security.
Check out this overview of what to expect when using the new EMV cards, who will be impacted by the introduction of these cards, why the change is being made, and more.
Making the technology upgrades necessary to accommodate EMV cards can be costly, with machines costing several hundred dollars and requiring training and process changes. Though larger corporations may have no problem upgrading, small businesses might struggle with the investment. This article provides recommendations for small businesses to bring their technology and operations up-to-speed.
Merchants Have Incentive to Adopt EMV Chip Reader – The Journal Times
If merchants do not have the appropriate EMV technology in place, they will be held liable for any occurrences of credit card fraud resulting from the use of the older card system. Take a look at why the higher upfront costs will be worth it in the long run.
Though more secure than magnetic strip cards, EMV card transactions take a few seconds longer to process, causing merchants to wonder if younger shoppers may stop using cards to make payments altogether. EMV card readers are capable of processing mobile payment methods (e.g., Apple Pay), so some speculate that the introduction of EMV reader may lead to an increase in the use of mobile payments.
EMV cards have been in use in Europe for nearly twenty five years and have resulted in a more than seventy percent decline in credit card fraud. However, despite this demonstrably higher level of security, the FBI still cautions that this new technology may simply mean the slowing, rather than the end, of credit card fraud.