What is EMV (Euro-Mastercard-Visa), or Chip Card Acceptance?

EMV: Euro-Mastercard-Visa Technology

EMV, which stands for Euro-Mastercard-Visa, is a technology often called "chip cards" and is now widely used globally. It was introduced in Europe in the 1990s. Unlike the traditional magnetic stripe card, EMV technology stores credit card data on a small chip within the card. This provides significant benefits:

Counterfeiting is much more difficult. Magnetic stripes can be easily copied by fraudsters who might steal your card briefly or use a "card skimmer" on an ATM to duplicate the card digitally. EMV technology significantly hinders this by sending dynamic data to card terminals, making copying the chip nearly impossible. Essentially, it dramatically reduces the risk of your credit card being cloned.

What Does EMV Mean for Merchants?

1. Avoid Potential Fees: If you don't accept EMV cards, you could face fees for any fraudulent transactions. By offering EMV acceptance, you avoid this liability. All new terminals sold by Allied Payments are ready for EMV acceptance.

2. Limited to Card-Present Transactions: EMV technology only helps in environments where the card is physically present. It does not protect against fraud in online or telephone transactions. 

3. Customer Satisfaction: You might think EMV technology isn't necessary yet, but all major US banks issue large numbers of EMV cards. Refusing EMV acceptance could lead to losing customers who only carry these cards, as you won't be able to process their payments without a magnetic stripe.

Frequently Asked Questions about EMV

Q: What are chip cards, EMV cards, and smart chip cards?

A: These terms refer to the same technology. EMV, which stands for Europay, Mastercard, and Visa, is the global standard for chip technology in cards. 

Q: Will customers still have to sign or enter a PIN?

A: Yes, they will need to do one or the other, similar to the current method, based on their card's settings. For example, PIN debit cards still require a PIN, and credit/signature-debit cards need a signature. This adoption of Chip+PIN or Chip+Signature maintains how customers finalize their purchases; just the security of the transaction itself has changed.

Q: What if my terminal doesn't support PIN input with EMV?

A: You will bear the liability. The EMV shift allocates liability to the least secure technology. You take on the liability if your terminal doesn't support Chip+PIN and processes it as Chip+Signature. However, all terminals from Allied Payments support Chip+PIN.

Q: Can I still accept a chip card without supporting EMV technology? A: Yes, initially, US-issued chip cards will also have magnetic stripes, so you can still swipe these cards. Terminals will prompt users to switch from swiping to inserting the card if necessary. However, you will be liable for fraudulent transactions if a chip-enabled card is swiped instead of inserted when your terminal doesn't support EMV.

Q: How do I handle chip cards for online or phone transactions?

A: You don’t need to worry about EMV for such transactions since they require the physical card to be present. Continue processing online or phone orders using the current method of entering card numbers and other relevant details.

Common EMV Myths

Myth: EMV is legally required

Fact: Adoption of EMV is not legally mandated. It's highly recommended to reduce fraud risk, but it’s ultimately up to the merchant.

Myth: EMV compliance eliminates PCI Compliance needs

Fact: Even with EMV, merchants must still comply with PCI standards and complete the annual PCI Compliance questionnaire.

Myth: EMV prevents all fraud types

Fact: While it reduces in-person fraud, EMV isn't a foolproof solution. Merchants still need to be vigilant about all forms of fraud and uphold robust security practices.

EMV is a trademark of EMVCo LLC in the US and other countries.