EMV Compliance....

What You Need To Know

 

Today, if an in-store transaction is conducted using a counterfeit, stolen or otherwise compromised card, consumer losses from that transaction fall back on the payment processor or issuing bank, depending on the card's terms and conditions.

 

After an Oct. 1, 2015, deadline created by major U.S. credit card issuers MasterCard, Visa, Discover and American Express, the liability for card-present fraud will shift to whichever party is the least EMV-compliant in a fraudulent transaction.

 

Consider the example of a financial institution that issues a chip card used at a merchant that has not changed its system to accept chip technology. This allows a counterfeit card to be successfully used.

 

The cost of the fraud will fall back on the merchant!

 

 

 

 

Note:

  • American Express is implementing a liability shift for point of sale terminals on 1 October 2015. For pay at the pump, at gas stations, the liability shift is 1 October 2017.

  • Discover is implementing a liability shift on 1 October 2015. For pay at the pump at gas stations, the liability shift is 1 October 2017.

  • Maestro implemented a liability shift of 19 April 2013, for international cards used in the United States.

  • MasterCard is implementing a liability shift for point of sale terminals on 1 October 2015. For pay at the pump, at gas stations, the liability shift is 1 October 2017. For ATMs, the liability shift date is 1 October 2016.

  • Visa is implementing a liability shift for point of sale terminals on 1 October 2015. For pay at the pump, at gas stations, the liability shift is 1 October 2017. For ATMs, the liability shift date is 1 October 2017.

EMV is a technical standard for smart payment cards and for payment terminals and automated teller machines which can accept them. EMV cards are smart cards (also called chip cards or IC cards) which store their data onintegrated circuits rather than magnetic stripes, although many EMV cards also have stripes for backward compatibility. They can be contact cards which must be physically inserted (or "dipped") into a reader, or contactless cards which can be read over a short distance using radio-frequency identification technology. Payment cards which comply with the EMV standard are often called chip-and-PIN or chip-and-signature cards, depending on the exact authentication methods required to use them.

EMV stands for Europay, MasterCard, and Visa, the three companies which originally created the standard. The standard is now managed by EMVCo, a consortium with control split equally among Visa, Mastercard, JCB,American Express, China UnionPay, and Discover.

 

 

 

CHIP CARDS, BY THE NUMBERS:

  • 575 million: Number of EMV cards to be issued by the end of 2015

  • 59%: Percentage of retail locations that will be EMV-compliant by the end of 2015.

  • 78,800: Current number of EMV chip-activated merchant locations

  • 40%: Percentage of US. debit cards that will be issued as EMV cards by the end of 2015

  • 70%: Percentage of U.S. credit cards that will be issued as EMV cards by the end of 2015

  • 86%: Percentage of financial institutions that plan on issuing EMV debit cards in the next two years

  • $3.50: Average cost for issuing a new EMV card

  • $500.00: Average cost of an EMV-compliant point-of-sale terminal

High Risk Merchant Account, PayDay Loan ACH
High Risk Merchant Account, PayDay Loan ACH