What is EMV?

Europay International, MasterCard International, and Visa International formed EMVCo, LLC to manage new card specifications for payment systems around the world. The objective of EMVCo is to ensure that single terminal and card approval processes are developed at a level that will allow cross payment system inter-operability and increased security standards.

What is the Liability Shift?

Fraudulent transactions are typically absorbed by the credit card processing company. However, EMV technology is intended to boost security at the card level and as a result, credit card companies are no longer assuming responsibility for fraudulent transactions* if the merchant has not upgraded their technology to support the new, more secure chip & pin system. By April 1, 2013, U.S. acquirer processors and sub-processor service providers should start the process to support merchant acceptance of chip transactions. The fraud liability for merchants shifts at a later date, dependent on software and hardware developments. The official dates are as follows:

POS: October 1, 2015: Liability shift for any in-store POS fraudulent transactions on non-EMV compatible terminals

Forecourt EXTENDED: October 1, 2020: Forecourt liability shift for fraudulent transactions on non-EMV compatible terminals

*Fraudulent transactions and liability can vary between brands.

Little Chip, More Security

An EMV (also called a chip card) is a credit or debit card containing an embedded computer chip which provides the ability to securely store and process data and provides increased protection against lost, stolen or counterfeit card fraud. Cards with magnetic stripes contain static data. Thieves steal information and create a counterfeit card. Thieves have more difficulty stealing payment data from chip cards because payment information is encoded uniquely each time.

What are the benefits of EMV compliance?

Benefits of EMV compliance include:

  • Improved security (with associated fraud reduction)
  • Foundation for emerging technologies like mobile payments
  • Reduced charge-backs

What are the key dates to implement EMV in the United States?



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