Is Your Business Ready for EMV?

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Is Your Business Ready for EMV?

By Anna MaskerIn standard21st October, 2015

You may have heard about changing legislation relating to credit cards.  How does it impact your business?  Below are some frequently asked questions regarding EMV:

What is EMV?

As of October 1, 2015, EMV will be the new standard for the accepting credit cards with a chip. EMV stands for Europay, MasterCard and Visa. In the wake of all the data breaches and increasing rates of counterfeit credit card fraud, US card issuers are migrating to this new technology to protect consumers and reduce the cost of fraud.

Will it reduce fraud?

The chip EMV sends a unique transaction code when the credit card is used for payment. Therefore, if a hacker steals the chip information from on specific point of sale, typical card duplication would never work because the stolen transaction code would be usable again and the card would just get denied. Experts hope this will reduce fraud which has doubled in the past seven years.

How to use the cards?

EMV cards will no longer be swiped but inserted into card terminal slot called “card dipping.” When an EMV card is dipped, data flows between the card chip and financial institution to verify the authorization and create the unique transaction data.

Will I have to sign or enter a PIN?

Chip and pin cards will operate like a debit card but many payment processors are not equipped with the pin verification. It will more likely be a signature for the next few years.

What is NFC?

Instead of dipping or swiping, NFC (Near Field Communication) allows a customer to place a card against a terminal that can recognize the card data from the embedded computer chip. Contactless transactions are more user friendly but not all credit cards will be EMV and as well as contactless.

Fraud liability after EMV cards are issued?

Today, if an in-store transaction is fraudulent then losses from that transaction fall onto the payment processor or issuing bank. After 10/1/2015, the liability for card-present fraud will shift to whichever party is least EMV-compliant. So if the merchant doesn’t have EMV terminals and POS systems, the cost of fraud will fall back on them.

What about Card not-present environments?

EMV does not protect consumers from the “Card-not-present transactions” made over the phone or internet because the no chip transaction is involved.

Change is inconvenient and expensive, however, EMV is positioning the industry to protect customers’ personal financial information and identity.


For more information, please feel free to call Debbie Wolpov, Premier Payments at 201-538-6014 or email at


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