Credit card fraud costs nearly $9 million each year in the United States, so in an effort to reduce the level of loss, merchants must switch by October to a new, more secure way of processing credit card payments.
The EuroPay, MasterCard and Visa, or EMV, chip technology is designed to reduce fraud and protect merchants against losses when they accept counterfeit and lost or stolen payment cards at the point of sale. EMV credit and debit cards are embedded with a unique computer chip that is very difficult to replicate.
By October, all merchants must have credit card terminals that can accept EMV chip embedded cards. While many owner/operators may need to replace their current terminals to be EMV compliant, the cost of not doing so could be even greater. Any merchants who are not able to accept the new chip-embedded cards by October will assume liability for fraudulent purchases.
To accept EMV chip embedded cards, the credit card terminal and pin pad need to have a designated credit card-shaped slot that allows the customer to insert the card and then enter a personal identification number. Some EMV cards may allow for a signature, in which case the terminal will detect that the customer must sign for the purchase. With this system, the consumer retains possession of the card throughout the transaction.
Among the advantages of EMV chip cards is it protects against fraud, resulting in fewer disputes and chargebacks and treats credit and debit card purchases the same.
This information was provided by SunTrust Merchant Services. To find out if your equipment is ready to accept EMV chip cards, please contact your provider.