Five facts about EMV compliance
We’ve all heard about EMV and chip card technology. But what does EMV mean for your business? Here are five facts about EMV compliance that will help you navigate through the clutter and get to what’s important for you and your business.
Fact: EMV is an evolving set of global security standards
EMV compliance is about setting standards, not enforcing laws. In 1993 the card brand networks Europay, Mastercard, and Visa (EMV) joined to create EMV specifications. The idea behind EMV was to make accepting electronic payments more secure. EMV standards are maintained by EMVCo, a private corporation consisting of American Express, Discover, JCB, Mastercard, UnionPay, and Visa.
Before EMV, each network maintained its own standards. That made compliance difficult, especially for small businesses. Today, EMV common standards make safety compliance easier for all businesses that accept debit and credit cards.
Fact: EMV chip cards are more secure than magnetic stripe
Magnetic stripe was a static technology of the 1970s, using the same technology behind analog cassettes to store data. As durable and convenient as magnetic stripe was in making credit cards inexpensive to produce and easy to use, it proved no match for modern fraudsters. Criminals easily captured and replicated static data customer data contained on magnetic stripe cards to commit fraud.
EMV helps keep private credit card data away from fraudsters. EMV is a much safer technology that generates data dynamically. Chip cards connect with an EMV terminal to create a unique, single-use, one-time encrypted code helping to keep private customer data private.
Fact: EMV compliance reduces your liability for fraudulent purchases
Businesses are not legally required to upgrade their credit card terminals to be in compliance with EMV standards. EMV compliance is not a law. But a change in how liability for fraud is assigned by card brands makes EMV compliance the right move for business owners.
The EMV liability shift was meant to encourage merchants to accept a more secure method of payment. Before October 1, 2015, liability for most fraudulent purchases fell to the bank that issued the original card account. After that date, liability falls to businesses that hadn’t upgraded if the fraud was preventable with EMV technology. That could mean real losses in time, money, and your business’ reputation.
Fact: EMV is reducing counterfeit fraud in-store
EMV has significantly reduced card-present fraud in the U.S. In a June 2018 update, Visa reported that merchants who had completed the chip upgrade saw a 75 percent decline in counterfeit fraud dollars from March 2018 compared to September 2017. Overall, Visa reported that counterfeit fraud dollars for all U.S. merchants declined 46 percent during the same period. These statistics represent real progress in the battle against in-store counterfeit fraud.
The adoption of EMV standards remains a work in progress. EMVCo reports that as of Q4 2017, 41.2 percent of U.S. card-present transactions are now EMV compliant. Visa reports that 3.1 million U.S. business locations (or 67 percent of U.S. storefronts) now accept chip cards.
Fact: Consumers increasingly accept chip card technology
Change is often difficult, and EMV was no exception. EMV meant changing long-established habits of “swiping” at the register, replaced by “dipping” and, far too often, waiting. The initial rollout of EMV in the U.S. saw friction at the register. Yet evolving technologies such as Quick Chip from Visa and M/Chip Fast from Mastercard have helped smooth the EMV transition with faster transactions.
Consumers are responding positively to progress with EMV technology. An April 2018 survey from Worldpay and Socratic Technologies reported that 82 percent of credit card users report positive experiences with chip cards. The same report showed that 74 percent of consumers saying they hadn’t experienced any difficulties using chip cards in the past year.
EMV compliance is the right move for small businesses
EMV compliance is simply smart business. EMV helps to secure your businesses from losses related to counterfeit fraud while protecting your customers’ data. EMV represents a new generation of secure payments, is proven to reduce losses related to counterfeit fraud, and is increasingly accepted by consumers as a safe way to pay in-store.
Businesses that accept credit and debit cards can achieve compliance with the help of your payment provider. We are global leader in secure payment technologies that helps businesses like yours accept payments safely. To learn more about how we can help your business with EMV compliance, connect with one of our payments experts at 1-877-826-1725.