EMV is the latest generation of “smart” chip-enabled credit cards. An EMV card is more secure than a standard card with a magnetic “swipe” strip, and is designed to reduce the incidence of credit card fraud.
This new credit card technology originated in Europe and “EMV” stands for the three companies that created the standard: Europay, Mastercard, and Visa. Today all major card issuing companies embrace EMV cards and strongly recommend that all their merchants accept these cards.
The EMV chip in a card is used to electronically authenticate a transaction. The chip – each one personalized for an individual card holder – contains encrypted information about the holder’s bank account. When making a transaction, the card holder has to input a personal information number (PIN) that corresponds to that specific chip. This makes each transaction more secure and results in less credit card fraud and fewer merchant chargebacks. (EMV cards are also more difficult to counterfeit, which also increases security.)
To accept EMV cards, a merchant must have a terminal that supports the chip technology. Most such terminals can accept both EMV and magnetic stripe cards. If a merchant does not have or use an EMV terminal, they may be liable for any fraudulent transactions made.
Bottom line, if you do not currently have an EMV card reader you need to get one. It will reduce your liability, minimize your chargebacks, and increase security for both you and your customers. Higher Standards offers a variety of EMV terminals and can help you convert your business to be EMV-compliant. Contact us today for more details.