Most recent and upcoming American credit cards feature a new form of security named EMV technology. Otherwise known as ‘Chip Cards’, EMV, which stands for “Europay, Mastercard, and Visa,” is believed to drastically affect how credit cards are used and perceived by both consumers and retailers.
Part of the reason this is such a big development is because almost half of the world’s credit card fraud occurs in the United States, despite having only a fourth of the world’s credit card transactions. The U.S. is a newcomer to the party, and here’s what you need to know.
The U.S. Is Late to the Party
Although one may assume that the U.S. is simply adopting new technology, the fact of the matter is that Europe has been using chip-based technology for years now. The U.S. is considered well behind the game in terms of still using magnetic strips on credit cards.
It Doesn’t Have to Cost a Lot to Implement
As a business owner, a natural concern is that accepting this new credit card technology as a form of payment will be difficult and expensive to implement.
Fortunately, there are options such as the iPayment MobilePay ‘chip card’ reader, which accepts traditional cards, as well as EMV-chipped cards
You May Be Liable
With traditional magnetic strip credit cards, the bank takes on fraudulent charges should they arise. With the new EMV ‘chip cards’, in many cases, the retailer takes full responsibility for the fraudulent purchases, particularly if they do not own a proper EMV ready machine. The credit card processing rules went into effect in October 2015.
This is a seismic shift in regards to culpability and responsibility, and it has caused some controversy and uproar amongst both analysts and those with merchant accounts.
Are Cards Still Swiped?
New chip-based cards are not be swiped, but rather inserted or “dipped” into the reader. They are left in the device for longer than a traditional swipe takes, but ensure a much more secure transaction.
It Is Not NFC
Although both EMV and NFC are secure payment technologies, they differ in significant respects. In broad strokes, NFC is a contactless payment method, while EMV still involves a physical card. In addition, NFC transactions are usually faster than EMV payments. Both are safe, however, and good options for merchant accounts