Fraud Prevention Month: Are U.S. Merchants Prepared for the EMV Fraud Liability Shift?
March 13 2015 |
In an effort to reduce fraud at the point of sale, EMV was introduced as a multi-layered approach to payment security. EMV is a global payment standard for credit and debit payment cards based on chip technology. Merchants who have updated their POS systems to accept EMV chip cards are better protected against the use of counterfeit cards and are also protecting their customer's credit card data.What makes EMV more secure?
An EMV chip card is embedded with a microprocessor that can encrypt and securely store information, making it more secure than a magnetic stripe card. The chip contains dynamic values and interacts with a merchant's point-of-sale terminal to verify the authenticity of a card. When coupled with the use of a PIN to verify the identity of the card holder, EMV chip technology adds layers of security against fraud.Upgrading to EMV
EMV has already been implemented in most parts of the world and the resulting reduction in incidents of fraud at the point of sale, has shown it to be a viable technology in the fight against credit card fraud. The U.S. is the last major market to migrate to EMV and as of October 1st, 2015, merchants who have not upgraded their payment terminals to EMV capable devices will face liability for incidents of fraud as per the fraud liability shift.
Benefits of EMV Chip Technology
In addition to the security benefits of EMV, chip card technology has paved the way for emerging payment applications including contactless payments. When merchants upgrade their POS terminals to EMV capable devices, they also have the option to enable contactless payments such as Apple Pay. With Pivotal Payments' EMV capable terminals you can increase payment security for your business and future-proof your point of sale terminal!
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