Everything you need to know about EMV | emerchantpay
Summary
TLDRThe video script discusses the adoption of the EMV standard in the United States to combat card fraud. EMV, which stands for Europay, Mastercard, and Visa, is a technical authentication standard for payment cards and terminals. As of October 1st, over 120 million Americans have received an EMV card, a number expected to reach 600 million by the end of 2015. Merchants are encouraged to upgrade to EMV-compliant systems to mitigate liability in the event of fraud. The liability shift means that the responsibility for chargebacks now falls on the acquiring bank or merchant if they are not using EMV-compliant devices. EMV cards, also known as smart or chip cards, offer enhanced security through integrated circuits and can be contact or contactless. Merchants benefit from reduced fraud, streamlined administration, and familiarity for consumers accustomed to EMV transactions.
Takeaways
- 🇺🇸 **Adoption of EMV in the US**: American issuers have adopted EMV to counter card fraud, effective from October 1st.
- 🔒 **Risk Mitigation**: EMV is used to mitigate risk and prevent fraud, as well as to prepare for liability shifts.
- 📈 **EMV Growth**: Over 120 million Americans have received an EMV card, with a projection to reach 600 million by the end of 2015.
- 🛠️ **Merchant Technology Shift**: Merchants need to add new in-store technology and internal processing systems to comply with EMV.
- 📞 **Assistance for Merchants**: emerchantpay can help merchants navigate the EMV shift without disrupting their core business.
- 🚫 **Liability Shift**: With EMV, liability for fraud-related chargebacks shifts to the acquiring bank or merchant if they are not using EMV compliant devices.
- 💳 **EMV Compliance Liability**: The party least compliant with EMV in a transaction is liable for fraud-related chargebacks.
- ⛔ **Exclusions from Liability Shift**: The EMV liability shift does not apply to card-not-present transactions, lost and stolen fraud, or Visa PayWave transactions.
- 💡 **Smart Card Benefits**: EMV cards, known as smart or chip cards, are harder to counterfeit and can store data on integrated circuits.
- 🔋 **Multiple Uses for Smart Cards**: These cards can be used for data storage, authentication, user identification, and application processing.
- 💻 **Benefits for EMV Compliant Merchants**: Merchants with EMV compliant terminals benefit from consumer familiarity, reduced administration, fraud reduction, and multiple storage options.
Q & A
What is the EMV standard and why was it adopted in the United States?
-The EMV standard is a technical authentication standard for payment cards and the terminals and ATMs that accept them, created to counter card fraud. It was adopted in the U.S. starting from October 1st to mitigate fraud risks and protect issuers in anticipation of a liability shift.
What does EMV stand for and who are the current owners of the standard?
-EMV stands for Europay, Mastercard, and Visa, which are the three companies that originally created the standard. It is now called EMVCO and is jointly owned by Visa, Mastercard, American Express, JCB, Discover, and China Union Pay.
How many Americans have received an EMV card as of October 1st, and what is the projected growth by the end of 2015?
-As of October 1st, 120 million Americans have already received an EMV card. This number is predicted to grow to 600 million by the end of 2015.
What does the shift to EMV mean for merchants?
-For merchants, the shift to EMV involves adding new in-store technology, implementing new internal processing systems, and complying with new liability rules.
What is the liability shift in the context of EMV?
-The liability shift refers to the change in responsibility for card-present chargebacks due to fraud. With EMV, the liability now moves to the acquiring bank or merchant, depending on their use of EMV compliant devices and applications.
How does the liability shift work when there is a card-present problem transaction?
-In a card-present problem transaction, the party that is least EMV compliant is liable. If the issuer is EMV compliant but the merchant is not, the merchant is liable. Conversely, if the merchant is EMV compliant and follows the process, the liability shifts back to the issuer for fraud-related chargebacks.
What transactions are exempt from the EMV liability shift?
-The EMV liability shift does not apply to card-not-present transactions, lost and stolen fraud, or Visa PayWave transactions. In these cases, the liability remains subject to existing rules.
What are smart cards or chip cards?
-Smart cards, also known as chip cards, are a type of payment card that stores data on integrated circuits on a microchip, which is much harder to counterfeit than magnetic strips. They often retain the magnetic strip for compatibility with older payment terminals.
What are the two varieties of smart cards?
-Smart cards come in two varieties: contact and contactless. Contact cards require the cardholder to dip the card into the payment terminal slot and provide a PIN or signature, while contactless cards use a wifi logo and only require the cardholder to hold their card against the terminal to finalize the transaction.
What benefits do merchants receive from the shift to EMV?
-Merchants with EMV compliant payment terminals benefit from familiarity for consumers accustomed to EMV, reduced administration, decreased fraud through new safety features like NFC, and multiple storage options.
How can merchants ensure compliance with the new EMV standard?
-Merchants can ensure compliance with the new EMV standard by contacting their emerchantpay account executive for guidance and assistance.
What additional services does emerchantpay offer to help merchants navigate the shift to EMV?
-emerchantpay offers assistance to help merchants navigate the shift to EMV seamlessly, without interrupting their core business operations.
Outlines
💳 Introduction to EMV and Liability Shift
The video script introduces EMV, a payment card standard adopted by American issuers starting October 1st to combat card fraud. EMV stands for Europay, Mastercard, and Visa, and is now jointly owned by several major card companies. The shift to EMV involves new technology, processing systems, and liability rules for merchants. The liability shift means that if a merchant is not using EMV-compliant devices, they may be held liable for fraud-related chargebacks. The impact of this shift varies based on factors such as the use of EMV chip cards and payment terminals, the country of the transaction, and the type of card used. The liability shift does not apply to certain transactions like card-not-present, lost and stolen fraud, or Visa PayWave transactions.
Mindmap
Keywords
💡EMV
💡Liability Shift
💡Smart Cards
💡Contact and Contactless Transactions
💡Fraud Prevention
💡Authentication
💡Issuer
💡Acquiring Bank
💡Magnetic Strip
💡NFC
💡emerchantpay
Highlights
American issuers have adopted some aspects of Europe's EMV standard to counter card fraud in the US.
EMV adoption helps issuers mitigate risk, prevent fraud, and prepare for the liability shift.
EMV stands for Europay, Mastercard, and Visa, the three companies that created the standard.
As of October 1st, 120 million Americans have received an EMV card, with a projected 600 million by end of 2015.
For merchants, shifting to EMV requires new in-store technology, internal processing systems, and compliance with liability rules.
emerchantpay can help merchants navigate the EMV shift seamlessly without disrupting their core business.
With EMV, liability for card-present chargebacks due to fraud shifts from issuers to acquiring banks/merchants based on EMV compliance.
The party least EMV compliant in a card-present transaction is liable for fraud-related chargebacks.
If the issuer is EMV compliant but the merchant is not, the merchant is liable. If the merchant is EMV compliant, liability shifts back to the issuer.
The impact of the liability shift depends on factors like EMV chip card usage, payment terminal deployment, transaction location, card type, authentication, etc.
The EMV liability shift does not apply to card-not-present transactions, lost/stolen fraud, or Visa PayWave transactions.
EMV cards, also known as smart cards or chip cards, store data on integrated circuits making them extremely difficult to counterfeit.
Most smart cards retain a magnetic strip for compatibility with older payment terminals.
Smart cards can be used for multiple purposes like data storage, authentication, user identification, and application processing.
There are two types of smart cards - contact (dipping card into terminal slot) and contactless (holding card near terminal).
Merchants with EMV compliant payment terminals can benefit from reduced fraud, familiarity for consumers, reduced admin, and multiple storage options.
For more information on EMV and its implications for businesses, merchants can contact emerchantpay's sales team.
Transcripts
EMV, an American tale
With effect from last October 1st, American issuers have adopted some aspects of Europe's EMV standard
as a way of countering card fraud in the United States.
In addition to mitigating risk and preventing fraud,
issuers use EMV to protect themselves in anticipation of the liability shift.
In this video, we will tell you what you need to know about EMV, the liability shift,
smart cards and the benefits that EMV holds for merchants.
EMV is a technical authentication standard for payment cards and for the terminals and ATMs that accept them.
EMV stands for Europay, Mastercard and Visa,
the three companies that originally created the standard.
Nowadays EMV is called EMV CO
and is jointly owned by Visa, Mastercard, American Express, JCB, Discover and China Union Pay.
As of October 1st, a hundred and twenty million Americans have already received an EMV card.
This number is predicted to grow to 600 million by the end of 2015.
For merchants, the shift to EMV means adding new in-store technology,
adding new internal processing systems and complying with new liability rules.
emerchantpay will be able to help you navigate the new situation seamlessly,
without interrupting your core business.
Do not hesitate to reach out to us for assistance.
Traditionally, the issuer's always been liable for card-present chargebacks due to fraud.
However, with the advent of EMV the liability now shifts to the acquiring bank or merchant
depending on them using EMV compliant devices and applications.
Generally speaking, one could say that party that is least EMV compliant in a card-present problem transaction
is liable.
If the issuer is EMV compliant but the merchant is not,
the merchant is liable. If, however, the merchant is EMV compliant
and has followed the process for a particular payment, the liability shifts
back to the issuer for fraud -related chargebacks.
The impact of the liability shift depends on various factors,
like whether EMV chip cards were used,
whether EMV payment terminals have been deployed,
the country in which the transaction took place,
if it's a personal or commercial card, the authentication
the authentication result etc.
The EMV liability shift does not apply to card-not-present transactions,
lost and stolen fraud or Visa PayWave transactions.
In these cases the liability remains subject to existing liability and chargeback rules
to be completely sure that you are complying with the new EMV standard
contact your emerchantpay account executive.
EMV cards are more commonly known as smart cards or chip cards.
Instead of on magnetic strips,
these cards store data on integrated circuits on a microchip that is extremely hard to counterfeit.
Most smart cards will keep the magnetic strip, however,
for compatibility with older payment terminals.
Smart cards can be used for multiple purposes,
data storage, authentication,
card user identification,
and all application processing.
The card comes in two varieties,
contact and contactless.
With contact transactions the cardholder dips the card into the payment terminal slot and provides a pin or signature with contactless
With contact transactions the cardholder dips the card into the payment terminal slot
and provides a pin or signature.
With contactless transactions, the card has a wifi logo and the cardholder merely has to hold
their card against the terminal to finalise the transaction.
How will merchants benefit from the shift to EMV?
Assuming that the merchant has an EMV compliant payment terminal,
these are the benefits for that merchant.
Familiarity for consumers that are used to EMV,
reduced administration,
reduced fraud through new safety features like NFC,
multiple storage options.
For more information about EMV and what it means for your business,
please contact our sales team
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