EMV chip cards are coming as a replacement for traditional magnetic strip cards.
What does this mean for your business? Well, for one thing, it means your customers will soon be presenting a different kind of card of payment
Will you be ready?
In a recent Twitter chat, First Data @FirstData, a payments technology provider, offers the community some suggestions for getting your company ready to except EMV payments.
Small Business Trends CEO Anita Campbell @Smallbiztrends moderates “EMV 101: What You Need to Know About Chip Cards” and members of the community ask some questions. You’ll also learn about the benefits of the new technology for protection against fraud — and the dangers of not adopting it for your customers’ convenience. See excerpts of the chat below or view the full Twitter chat at #EMVTalk
Q1: Let’s start with the basics. What is EMV? #EMVTalk:
— Anita Campbell (@smallbiztrends) April 28, 2015
A1: (2) #EMV is a fraud-reducing technology that protects issuers, biz & consumers from losses caused by counterfeit card fraud. #EMVtalk — First Data (@FirstData) April 28, 2015
A1: (3) #EMV cards have a special chip that tells a #POS device whether a card is valid. #EMVtalk
— First Data (@FirstData) April 28, 2015
So what exactly do small businesses need to know about accepting these new cards?
@smallbiztrends A6: isn’t there an encrypted code that will be assigned to them for each transaction? And no more swiping? #emvtalk — Erin Schurtz (@erinschurtz) April 28, 2015
A6: (1) Using an #EMV card is different from just swiping a credit card. #EMVtalk
— First Data (@FirstData) April 28, 2015
A6: (2) Customers must dip their cards into the terminal and enter their PIN if necessary. #EMVtalk — First Data (@FirstData) April 28, 2015
Think the EMV chip card revolution won’t affect your small business? Ah, think again. As Data First reminded the recent chat audience:
A3: (1) Starting in October, if biz owners don’t have an EMV-standard #POS… #EMVTalk — First Data (@FirstData) April 28, 2015
A3: (2) …and a customer paying with an EMV-ready card is a victim of fraud, the owner assumes liability… #EMVtalk — First Data (@FirstData) April 28, 2015
A3: (3) Meaning they will be liable for any and all fraudulent charges, which may be financially devastating for small biz people. #EMVtalk — First Data (@FirstData) April 28, 2015
See? Of course, this explanation only raised more questions:
@Lyceum Security is collaborative. Issuers do their part by creating chip cards. Merchants need to do their part by accepting them. #EMVtalk — First Data (@FirstData) April 28, 2015
Are EMVs for everyone, or just for a specialized niche?
Q7 (1): Do EMV protocols vary by industry? #EMVTalk
— Anita Campbell (@smallbiztrends) April 28, 2015
Q7 (2): For example, should those in the restaurant industry think differently about EMV than those in the grocery industry? #EMVTalk
— Anita Campbell (@smallbiztrends) April 28, 2015
A7: No, regardless of what industry you are in, #EMV will be the same during the transaction process. #EMVtalk
— First Data (@FirstData) April 29, 2015
Still, EMVs aren’t a magic bullet. Thy cannot protect against every kind of fraud.
@erinschurtz EMV addresses card-present counterfeit fraud, not ecom fraud. You can work w/ your payment processor like @FirstData. #EMVtalk — First Data (@FirstData) April 28, 2015
Want to learn more about EMVs and how they work? See the infographic from First Data telling you more:
Infographic: How Tokenization Protects Consumers, by First Data.
Disclosure: Anita Campbell has been compensated to participate in this Twitter chat.
Shawn: I enjoyed the chat. Thanks for including my question! I look forward to the next chat on May 7.