The Small Business Administration recommends all vendors use EMV card chip readers to provide protection against fraud and liability. If the consumer doesn’t have a new card, or if your business is updated, the card issuer is liable.
#Emv card technology update#
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.Ĭonversely, if you have updated your equipment to accept EMV chip card payments, the liability is lifted. 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. In some countries outside the United States, all credit and debit cards and card readers must be powered by EMV chip card technology.
The EMV chip standard on debit and credit cards has been adopted by more than 80 countries. The card is read through radio-frequency identification technology, allowing consumers to tap and go. 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. 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. 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. 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. 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.ĮMV chip cards are also harder to counterfeit. This means, when a customer inserts an EMV chip card into a point-of-sale machine, a unique transaction-specific encryption occurs. Compared to other cards that use a magnetic data stripe during a payment, EMV chip cards rely on dynamic digital data. It’s the technical standard for smart payment cards, ATMs, and payment terminals that enhance transaction security. What Exactly is EMV Chip Card Technology?ĮMV stands for Europay, Mastercard, and Visa. With EMV chip card technology, new standards make payment processing more secure, for both consumers and 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.
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