Everything you need to know about EMV | emerchantpay

Summary

The 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.