History Of and Why Should I Use EMV?

EMV Technology Needs To Be In Place To Protect You and Your Customers.

What is EMV?

EMV is the chip card inside of credit cards. EMV stands for Europay Mastercard Visa. These were the three big companies that decided to adopt this new technology. Since traditional credit cards use an audio track on a magnetic strip they quickly began to be copied and fraud ran wild. EMV technology was created in the 1970s in Europe to deal with theft of traditional credit cards. There are two reasons it took so long to implement this technology in the United States. The first being we already have strong credit card security. The second being the additional cost to implement this new technology. Up until October 1, 2015, when there was a shift in liability, there was no importance on merchants switching to this technology.

What The Shift In Liability Means For Me

On October 15, 2015 there was a shift in liability from card brands and processors to the merchants, thus increasing the urgency to leverage this technology.  This is not a law enacted by our government. However, this technology is something you need to implement in your own business. The biggest reason is to provide the added security for you, and more importantly your customers. Additionally, with this shift in liability, you will be held liable for any transactions insecurely swiped versus dipped. This means if a customer comes in and you swipe their chip card they can deny the charge. You will be held liable for this “friendly chargeback” and you will not be able to fight these transactions. These chargebacks can add up to additional fees. Although this is costly, there is a bigger threat if you are swiping inside your POS system.

Why Do I Need To Process “Out Of Scope”

If you are processing your transactions by swiping cards on the side of a terminal, all of this information is held within your POS system. This means if a cyber terrorist were to hack into your POS system, they could get all of your credit card information. You are held liable for this breach and not only have to deal with your local FBI agent, but face severe fines as well. Additionally, there is the backlash of being a business that did not respect the privacy and security of their customers.. The solution to this is to implement external EMV readers. These readers will then take you “out of scope” since the transactions are no longer processed through your POS system. Companies such as Shift4 offer even more security through these devices as well. This helps in creating some of the most secure transactions in the world.

How Does This Effect My PCI Compliance

First thing to remember, EMV compliance and PCI compliance are two different things. EMV refers to using encrypted card readers that prevent fraud, and PCI compliance relates to what you do with any credit cardholder information that comes into your business. In addition to avoiding chargebacks, Out of Scope processing — as mentioned before — is inherently PCI compliant. By only running credit cards through encrypted EMV readers, you are no longer in a cardholder data environment, which greatly reduces your PCI exposure, and saves you the time of filling out long security assessments every year. Implementing EMV with FPOS group will save you time and money every year by helping to secure your PCI environment and prevent fraudulent cards from being used in your business.

How Do I Implement EMV?

Any current Future POS customers should reach out to their sales representative to get the ball rolling to implement EMV chip card readers on their system. Please contact FPOS Group and a specialist will be assigned to you.

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However, if you are not a current FPOS Group or Future POS customer and would like more information on how we save our customer’s time and money please click the link below to set up a demonstration from our staff.

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