EMV in the USA Why EMV Is Important Now What Makes EMV More

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The EMV deadline has passed. Oct 1 2015

Take these steps to become EMV compliant now.

EMV has arrived. ...are you prepared?

As of October 1, 2015, if your customers pay with an EMV chip card and you don’t have an EMV-compliant terminal, you may be liable for any transactions found to be fraudulent.

Why EMV?

EMV is the name for the secure chip embedded in more than 2 billion payment cards worldwide – the vast majority of them outside the United States. The reason for their popularity is simple: They dramatically reduce card fraud. Although the technology is still not widely known in the United States, the benefits of EMV are too strong to overlook for long.

25% $10B 2X -27% TRANSACTIONS LOSSES FRAUD FRAUD

Although the United States Losses due to card fraud in Credit card fraud rates have Europe has already greatly accounts for only a quarter of this country are expected to doubled in recent years, reduced card fraud with the world’s payment card top over $10 billion in 2015. representing 10 cents out of EMV. For instance, fraud in transactions, more than half every $100 transacted. the United Kingdom dropped of all fraudulent card 27 percent between 2007 transactions happen here. and 2012, the years when EMV cards became widely accepted in that country.

EMV in the USA

575 M 1.2 B NEW EMV CARDS CARDS WILL TRANSITION

Industry watchers estimate The U.S. is set to transition that there will eventually be more than 1.2 billion payment more than 575 million EMV cards and 8 million chip-enabled payment cards point-of-sale (POS) terminals in circulation in the U.S. to meet EMV requirements.

A great deal of technology will be needed to handle those changes, and merchants will need assistance to ensure they are EMV-enabled. They will inevitably turn to their banks for that assistance.

EMV represents a more secure future for card payments, and promises to reduce card fraud and counterfeiting, potentially transforming the landscape for payment processes in the United States.

What makes EMV more secure?

The EMV computer chip that replaces the old magnetic stripe can hold a lot more information than the stripe. It’s virtually impossible to copy or make counterfeit cards, and EMV has encryption capabilities built in to lock down and protect sensitive payment data.

Unlike mag-stripe cards, an EMV chip card The EMV technology makes it virtually always remains in the physical possession of impossible for thieves to duplicate cards, the consumer. thereby reducing card fraud at the point of sale. The buyer inserts the card into an EMV reader or taps it on a contactless sales Only EMV-enabled terminals can read and terminal to make a transaction, with no hand decode the card. off of a card number to the merchant and no swipe.

The Impact of EMV on Small Merchant Businesses

The date of reckoning for EMV cards is here. As of October 1, 2015, if a consumer uses an EMV chip card with a merchant who doesn’t have an EMV-compliant terminal, and the transaction is found to be fraudulent, the liability for any charges is left with the merchant.

The main reason cited for not upgrading, a lack of knowledge about EMV.

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According to market research by Not surprisingly, nearly Javelin, more than half of small three-fourths of small business business owners have little or no owners have no plans to upgrade knowledge of EMV - or this to EMV compliant terminals by upcoming liability shift. the end of 2015.

By shifting to EMV, your customers can eliminate any exposure or losses to card fraud for card-present transactions at their business.

EMV offers a choice – merchants can either eliminate risk by upgrading their systems, or do nothing and simply live with the possibility of taking a major hit due to card fraud sometime down the road.

As they become more aware of EMV’s ability to keep their data safe, consumers will naturally gravitate towards it. And if a merchant isn’t ready to take an EMV payment, it will translate into lost business—business that most small merchants can’t afford to lose.

Why EMV is Important Now

Awareness may help protect your clients now. A primary way cybercriminals use stolen credentials is to create a false card to impersonate the actual card. As criminals recognize EMV implementation is underway, they tend to increase fraudulent activity.

Reduce liability costs. Businesses still using magnetic stripe terminals after October 1, 2015, are on the hook for the costs if someone uses a lost or stolen credit card.

Start adding value to your clients. The less merchants have to deal with the EMV changes on their own, the easier and more secure their transition will be. For your clients the liability shift is unnerving. This is your opportunity as their banker to help them understand and prepare, adding significant value to these relationships.

Talk to your clients today about EMV and how it will affect their business. Refer your clients to your business consultant to help them understand and prepare for EMV.