EMV Is Here To Stay, But The Problems Are Real

in Blog
on Wednesday, 11 May 2016 16:08

Credit card fraud is a major concern for merchants and credit card companies, costing the industry more than $5 billion a year. In an effort to prevent fraud, most banks are now reissuing all credit and debit cards with EMV technology – small chips inside that are designed to make cards harder to duplicate and therefore minimize fraud. There’s a lot of debate about whether EMV cards help or not, but the new standard is here to stay.

Merchants and those who serve them must adapt.

Named for the companies that developed the standard – Europay, MasterCard and Visa – EMV chip-in-card technology has been in use in Europe for years. Embedded microchips store cardholder data and protect it. When used with other security measures, this sometimes leads to the name “chip and signature” or “chip and PIN” when referring to EMV technology.

While a magnetic stripe can be duplicated and the data on it used over and over for fraudulent transactions, EMV cards use a unique transaction code for each transaction, so if a hacker steals data from a single POS device and duplicates it, it won’t work.

Problems With The EMV Transition

Consumers have perhaps the easiest role in the EMV transition despite some resistance to the inconvenience of new procedures and terminals when buying in person. They get a new card, activate it and use it. Since many merchants aren’t yet EMV compliant, much remains the same. At compliant merchants, customers insert their cards instead of swiping them.

Merchants, on the other hand, have much more to do. Merchants must obtain new hardware with chip card slots and do significant system upgrades. By 2018, some estimates place the cost of upgrading to EMV technology at nearly $3 billion. Those that don’t upgrade are responsible for fraud that results.

Problems with the move to EMV cards have caused concern for some merchants and merchant service providers. These problems include:

  • All the costs involved, including software upgrades, new POS systems and chip-compatible terminals
  • The fact that chip-in-card technology does nothing to help with online fraud, a big problem
  • The possibility of fraudsters moving online to benefit from the fact that no new protections are in place for card-not-present transactions
  • And more.

Move Forward In Confidence

Online merchants are encouraged by the government and by card companies to make sure they’re using the latest security protocols, the newest equipment and a payment processing system that takes the latest fraud possibilities and challenges into account. Bricks-and-mortar merchants are encouraged to transition to EMV compliant devices and software as soon as possible.

At PayVisors, we’re a business consulting company that works with bricks-and-mortar and online businesses to make sure you have the best payment processing software possible. Often, the open source commercial software payment processing solution from United Thinkers is the best choice. The UniPay gateway was designed to be robust, scalable, adaptable and to function at the highest level.

Why not contact us now and learn how you can move forward in confidence with your EMV obligations met? Were here for you.

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