EMV is creating a more secure payment process for businesses across the globe. Let's take a look at the details of the new EMV chip.
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What is EMV?
EMV, commonly known as ‘Chip & PIN’ or ‘Chip and Signature’, is a technology to replace the magnetic data stripe on the back of credit cards. It is a small microchip embedded on the front of the card that is very hard to duplicate
The US Has a Fraud Problem
- The goal of EMV is to reduce credit card fraud/
- The US is one of the only remaining countries in the world that still uses magnetic stripes to swipe credit cards
- Nearly half of all credit card fraud now occurs in the USA, even though only 25% of transactions take place here.
- 85% of card present transactions in Canada are now Chip & PIN
- 76% of point-of-sale devices active globally (except for the US) accept EMV cards. Debit card fraud has dropped to record lows since the peak in 2009.
- 40% Canadian dollar losses due to card skimming declined by nearly 40% in 2011 after EMV implementation in 2010
- Europe migrated to EMV in 2006. 97% of card present transactions in Europe are now Chip & PIN
Debit and Credit Card Fraud has dropped to record lows in regions of EMV implementation, since the peak in 2009
October 2015 Liability Shift
- The EMV liability shift took effect October 1, 2015
- Retailer Compliance
- Starting then if you swipe a fraudulent credit card and you are not not setup to take EMV chip card, the banks will make you responsible for the fraudulent charge.
- If the card is stolen, but you processed the transaction using the Chip & PIN, the bank will take responsibility for the fraudulent charge
- eCommerce Compliance
- The liability shift does not impact card-not-present (ecommerce) transactions. The policies in the place for manually keyed transactions have not changed
US EMV Market
- Retail Terminals
- 7 Million merchants that will be EMV compliant by the end of 2015
- 12 Million estimated point of sale terminals to be upgraded for EMV acceptance
- 181 thousand EMV retailers
- Chip Cards
- 600 Million totals projected EMV cards by the end of 2015
- 2 billion Estimated debit and credit cards await upgrade to chip card technology
- 120 Million already EMV
Get EMV Ready Today
- Don’t expose your business to the October liability shift
- Most major processors now offer EMV equipment that will process Chip & PIN and Chip and Signature cards for you. Contact Helcim today for a free savings estimate.