*Excluding gas stations, which have until October 2020. The original deadline for this liability shift was October 1, 2015, meaning if you aren’t currently supporting EMV, you are already at a much higher risk.* So if your business swipes when it should be dipping, the issuing banks are going to leave you out to dry. This liability shift has wide repercussions and makes fighting back against chargebacks essentially impossible. If you don’t, you’ll be liable for transactions accepted with methods like magstripe. The EMV compliance “law” states that all merchants need to upgrade their POS systems to support EMV chip cards. This is more of an industry-specific regulation as dictated by the card member associations. The first thing to note is that this isn’t actually a “law” in the traditional sense. If you’ve been doing a bit of research or have received a notice, you’ve probably heard about the credit card chip reader law. What you need to know about the credit card chip law ![]() It’s a bad customer experience, and when fraud happens consumers often lose trust in the business they were transacting with. Customers don’t like companies that are risky to transact with. Online transactions still play by the old rules.Īnd it’s not just liability you should be worrying about. Keep in mind that this only applies to transactions where a physical card is used. While you can still accept transactions without EMV, you are opening yourself up to a ton of liability and are subject to the rules that apply to non-EMV transactions. This change needs to be universal across your business - anytime transaction not accepted with EMV isn’t compliant. Okay… but what is the compliance portion of EMV?Ĭompliance just means having your tech up to date.įor merchants, EMV compliance means upgrading existing hardware to support chip technology. When you compare September 2018 to September 2015, chip-enabled merchants saw an 80 percent drop in counterfeit fraud compared to a year earlier, according to Visa. EMV won’t stop people from stealing data, but selling that data and using it will be much more difficult than it used to be!Īnd so far the results of EMV compliance are fantastic. So what is “chip” technology?ĮMV chip technology is vastly superior to their magstripe predecessors - assigning individual, anonymized tokens to each transaction via a computer “chip”, rendering any data that could be stolen essentially useless because that transaction data can’t be used again.Īgain, magstripe data can be used for transaction after transaction, making it much more valuable to fraudsters. Chip technology was specifically designed to fight back against these data breaches. Since magstripe data could be used in multiple transactions, criminals only needed to steal a person’s data once to get a long runway of use before getting caught. More and more consumers were getting their data stolen when transacting with magstripe technology, and fraudsters were getting increasingly more sophisticated with the size and scope of their operations. ![]() The cardmember associations (American Express, Discover, JCB, Mastercard, UnionPay, and Visa) met together (in 1993!) and built chip technology as a defense against the frequent (and substantial) breaches that occurred in the 2010s. What is EMV compliance?ĮMV compliance is a global payment technology standard established by cardmember associations like Mastercard and Visa designed to protect customers from fraud.ĮMV is an acronym as you may have suspected, and it stands for Europay, Mastercard, and Visa. We’re going to explain exactly what EMV compliance is, why it matters to you and your business, and what you need to do to be compliant. Nevermind that the UK is already transitioning to contactless payments across the country, but that’s a topic for another day. The hope is that by 2020 everyone will be switched over to EMV, and the US markets will finally complete their walk into a more modern payments industry. Not integrating EMV into your business isn’t a repercussion-free option - you are opening yourself up to significantly more risk and in many cases are completely liable for fraudulent transactions accepted with magstripe instead of EMV, and we’ll cover the details and deadlines of that shortly. 2015 marked the national transition and original incentives of EMV, although chips have been used for years in countries like the UK. If you’ve been in business or started a business in the past decade, chances are you’ve heard about EMV (more commonly known as chip).
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