After October 1, 2015, according to Visa, any business that causes an EMV transaction to not occur, “ will be held financially liable for any resulting card-present counterfeit fraud losses. “
Here’s how EMV works in its simplest form:
1. An EMV is a smart card. Inside it is a computer chip. Currently non-EMV cards have only a magnetic stripe on the back. EMV cards will also have a magnetic stripe but produce a unique code every time it’s used.
2. EMV cards and mag-stripe cards use one of two methods to process a payment, card reading and transaction verification. EMV cards work using contactless communication (touching it to a special scanner) or by inserting it into a terminal slot and leaving it there for a moment during the verification process.
3. To verify the customer is not using a fraudulent card, the customer will be required to either sign or provide a PIN as a second verification step.
4. All EMV cards require a second form of authentication. If the terminal can’t accept the PIN for some reason, it then automatically knows to request a signature. There will always be a secondary option.
This migration to EMV should significantly reduce card present fraudulent transactions. To get your new EMV enabled terminal absolutely free, call Mark at Tannen and Associates, at (408) 888-9663.