If you are a business owner, you would be familiar with EMV cards, as they have become a standard in the U.S. over a past couple of years. While several merchants are migrating to EMV technology, it’s essential for you to know all the details to make a better decision.
Europay, Mastercard and Visa, or EMV for short, is a global standard for payment cards equipped with chip technology used to authenticate transactions. Due to numerous data breaches and an increasing number of counterfeit card fraud cases, card issuers in the U.S. have started deploying this new technology to mitigate the risk of fraud and protect consumers’ sensitive data.
According to a report, counterfeit fraud, in dollars, for all American merchants who migrated to chip-card technology dropped by 80% in September 2018 compared to September 2015. It clearly indicates that chip technology has been proved to improve payment security, reducing the risks of counterfeit card fraud.
A Brief History of EMV
First introduced in France in 1986, the U.S. started its EMV deployment much later than Europe. However, the increasing rates of stripe cards fraud motivated several merchants to look for the technological solution that offered better security measures. Due to this, many card issuers in the United States migrated to the EMV standard.
How Is EMV More Secure?
At present, you may often see a metallic square of new payment cards. Well, that’s a computer chip, embedded with EMV technology. Unlike the magnetic stripes on traditional cards, EMV equipped cards are safer and more secure.
In traditional cards, it was easy to access the sensitive data of a cardholder, which made these cards prime targets for counterfeiters.
Put simply, if someone steals a magnetic stripe, they can replicate the data easily every time, as it doesn’t change, and covert the stolen card data to cash.
In contrast to magnetic-stripe traditional cards, every time an EMV-embedded card is used, the chip generates a unique transaction code for payment, which can’t be used again.
Even if a hacker steals the information from the chip, typical card duplication will never work, as the stolen transaction code wouldn’t be usable again and the transaction will be refused.
EMV technology prevents data breaches and makes it harder for criminals to access the data. Experts believe that this new technology will help mitigate fraud risk in the U.S.
How to Protect Your Business with EMV?
If you’re thinking to accept EMV payments, keep in mind that EMV compliance is different for every business. It depends on the point of sale (POS) of your place.
Therefore, to make your payments EMV compliant, you will need to upgrade the POS systems at your business to accept chip-tech cards. Moreover, you will need to update your system’s software and hardware.
While EMV migration is more complicated than updating your payment terminal, you can invest in EMV-enabled mobile terminals, such as from MOBILEMONEY to leverage their benefits. The benefit of installing EMV-enabled payment terminal is that your consumers will also be able to process the magnetic-stripe traditional cards with ease.
Once you have decided to accept EMV payments, create a budget and timeline for migrating to the new payment technology. However, it’s important to mention here that many people believe that integrating your payments with EMV standard is legal compliance, which is not true.
Now that you know the undeniable benefits of EMV migration, you would be thinking to install an EMV-enabled ATM into your business location. In that case, make sure to choose dependable vendors, such as MOBILEMONEY to get the most bang for your buck.