EMV (which is an acronym for Europay, MasterCard and Visa) is a more secure way of accepting payment. A “smart card” or “chip card” and an EMV-enabled point-of-sale solution are required to leverage the technology and security capabilities inherent to EMV. All businesses that accept debit and credit cards are required to accept EMV cards by October 1, 2015.
Smart cards contain a “chip” capable of more sophisticated security that traditional magnetic stripe cards, keeping cardholders safer and combatting counterfeit and fraud by assigning dynamic values for each transaction. Since fraudsters cannot skim or copy chip card data, EMV technology helps reduce fraud for your business and your customers.
During the transition to EMV, financial institutions will issue EMV cards that contain a chip. During a transaction, a cardholder will insert the card into an EMV-capable device where it stays during the transaction. In some cases the customer will be prompted for a PIN; other times a signature will be required. This distinction will be made by bank.
You need to be aware of the liability shift that is scheduled to go into effect on October 1, 2015 – a date determined by the credit card associations. That means, by this date, if your business accepts and processes a counterfeit transaction on a non-EMV enabled terminal, the liability for that transaction is yours, not the card issuers.