Do I need an EMV terminal?
While this evolution in the way we pay for things has reduced transaction processing costs around the world, as well as increased bank profits, unfortunately, e-shopping has also increased our vulnerability to potential fraud.
It is much easier to clone a credit card than to create a paper note. Despite a barrage of information security services and procedures to counter this type of crime, it is estimated that credit card fraud cost the UK about £ 440 million in 2009 (2009). Although this number represents a decrease of 28% compared to the previous year.
EMV, which stands for Europay, Mastercard & Visa, is a joint venture between these three companies to make credit card fraud more difficult to achieve. Although technology has many benefits that go far beyond fraud prevention.
The positive elements of the EMV standard can be categorized into three particular aspects that demonstrate the benefits of system adoption. These are:
The exchange rate
Transfer of responsibility to a non-EMV party
Financial motivations
First, the interchange rates payable by the acquirer to the issuer are reduced by 10 basis points of the value of the transaction when the card is acquired at an EMV terminal. The second aspect of the transfer of liability comes into play in the event of a disputed transaction. In such a case, the cost of the transaction would be payable by the party that did not implement EMV. Finally, each EMV region has a fund that exists to financially assist banks with the costs of migration to EMV.
Additional benefits of EMV technology include the ability to reconfigure cards after they are issued. Previously, to make changes to the customer’s offline limits, a new card had to be issued. Now, however, a script is sent to the terminal that will update the configuration of the card without the need for a new card to be distributed.
Since the introduction of the EMV initiative in the early 21st century, there has been a rapid implementation of ATM software that is compliant with the new EMV technology. These ATM EMV solutions are now the norm in the whole world.
Here are some questions and answers about EMV
Is it true that, as a business owner, if I accept a lost, stolen or fraudulently reproduced credit card for payment, I could be financially responsible for the losses?
Well, in a nutshell, yes, you could be potentially responsible. To limit and possibly eliminate your risks, you must absolutely use a terminal equipped with EMV. Many merchants still use the old credit card terminals, now obsolete, equipped with magnetic card readers, which exposes them to unnecessary risks.
Where and how can I get one of these new terminals?
Your current merchant service provider should be able to upgrade to a new terminal, probably at a cost. More than likely, there were also many types of sales that knocked on your door, scared you of this risk shift and tried to sell you a new terminal, or worse yet, put you in a long-term lease. Unfortunately, there have been many in this industry who have used this massive shift in the payments landscape as an opportunity for personal financial gain. Be informed, free terminals are also available for merchants.
How are these new EMV terminals different from the terminals we have been using for years?
Although at first glance, these new terminals look a lot like your existing terminal because they still have the magnetic card reader (we’ll see why in a future question). The difference is that the new terminals have a location in which a smart integrated credit card is inserted into the machine rather than just being scanned.
For more information about EMV payment processing hardware, contact us at Answers@enterprisefundingsolutionstx.com
