EMV – You’ve probably heard the term by now. The name was developed from the three major credit and debit card issuing companies Europay, MasterCard, and Visa but EMV IS the globally accepted answer to fraudulent credit and debit card use.
EMV utilizes a small data processing chip embedded in either plastic (such as a debit or credit card) or a mobile device to transmit encrypted information, acting as a secondary form of identification for cardholder transactions.
A typical EMV transaction works like this:
Contact: Cardholder touches plated contact point of card to EMV reader. Contactless: Cardholder or mobile device holder waves card/mobile device within 4cm of EMV reader.
EMV reader powers the hidden chip, allowing it to communicate encrypted information, generating a code, or cryptogram, to send to the processing host for verification.
Host processor decodes encryption, verifies the EMV chip and returns an authorization cryptogram allowing the transaction.
The EMV chip and the card/mobile device holder’s PIN, magnetic strip or signature must be verified in order for the transaction to be valid. This creates the only globally accepted form of 2-factor authentication.
There are several reasons to begin implementing EMV.
• Visa has announced its intent to begin EMV implementation in the U.S. for point-of-sale terminals with a change-over deadline of October 2015. (Fuel sales merchants have until 2017.) Liability for fraudulent charges on non-EMV POS terminals after this date will be shifted to the merchant’s acquirer.
• MasterCard has announced its intent to begin shifting their Maestro ATM Network over to EMV with a deadline of April 2013. Liability for fraudulent charges at non-EMV ATM terminals after this date will be shifted to the ATM owner.
• Improve security: As criminals are currently only capable of duplicating the magnetic strip on cards, not the EMV information, any EMV card utilized on an EMV enabled device will return an invalid transaction on a duplicated card. Fraudulent charge losses in countries that have implemented EMV have dropped approximately 63%.
• Cardholder Satisfaction: Currently, U.S. citizens holding non-EMV credit and debit cards are unable to make many transactions internationally.
• International Cardholder Satisfaction: International EMV-enabled cardholders are unable to make many transactions in the U.S. as most U.S. ATMs and POS terminals are not equipped to read EMV cards.
• Position yourself to accept future forms of payment.
The first step in EMV implementation is knowledge. Learn as much as you can about the new technology before moving forward. Once you are confident you understand what EMV is and how it works put your mind at ease because SOLO POS is EMV certified and completely compliant. Your search is over.