EMV Chip Cards Are Here
The country has switched to a more secure standard of payment technology called EMV. Already the standard in most major economies around the world, EMV chip card technology was developed by EuroPay, MasterCard, and Visa to prevent the growth of payment card fraud in the card-present environment.
Chip cards resemble the magnetic stripe cards that are in use today, but they also contain a microchip that is embedded in the card itself. This chip securely stores the card data that currently resides on the magnetic stripe. The chip enables more secure processing by producing a cryptogram, a single use code that is unique to each transaction. Data on mag-stripe cards does not change, which makes it simple for criminals to copy a card, produce a duplicate, and use it to pay – all within just a few minutes.
The key component in this new technology is the accompanying liability shift. In-store counterfeit fraud liability now shifts to the party (the merchant accepting the payment card or the financial institution that issued the payment card) that has not adopted chip technology. This means that if your business chooses not to utilize EMV technology, it may bear the liability for the fraudulent transaction activity.
It is strongly recommended that businesses verify they have an EMV-capable payment processing solution as soon as possible. Failure to do so may expose your business to increased risk as fraud is expected to migrate to the least secure technology (mag-stripe). If you process with MSG Payment Systems, contact us at (888) 697-8831.
Information provided herein is subject to change without notice.