What GGRA members need to know about EMV now
The US payments industry has been chugging along on old technology while the rest of the world has implemented EMV card technology for more than a decade. As recent data breach headlines in the US suggest, criminals focus on the easiest targets and right now, that is the US. But not for long. In order to avoid potential liability while ensuring customer transaction security, many merchants plan to implement EMV technology.
As a country, the US is moving toward the EMV standard as a direct result of the payment networks shifting specific fraud liability to merchants starting on October 1, 2015. What do merchants need to know? Read on.
What is EMV?
EMV is a joint effort between Europay, MasterCard® and Visa® to improve payment safety through better card security and improved standards. Countries that have implemented EMV have seen card fraud plummet. Why?
- EMV cards provide improved security compared to the traditional magnetic stripe cards.
- Microprocessing chips embedded in EMV cards generate a unique number for each sales transaction making it extremely difficult to use a cloned card on a card-present transaction, which represents 96% of restaurant transactions.
- Magnetic stripe cards use static data that can be stolen and reused for fraud.
- Plus, introducing chip cards in the US not only improves card security, but EMV also helps usher in the new technology and capability for contactless transactions.
EMV in the US
Need more reasons to make the EMV POS system upgrades to your business? All major card brands support EMV because it:
- Reduces the criminal attractiveness of card fraud. When card-present card fraud becomes too difficult, criminals move to easier targets.
- Creates common cardholder experience. Moving to the EMV standard in the US will make it easier for US travelers using cards abroad. Likewise, international travelers will have peace of mind when conducting transactions here.
- Reduces chargebacks due to counterfeit or stolen cards. Fewer chargebacks save merchants time and reduce the frustration typically involved with the chargeback process. Helps merchants avoid the potential liability for card-present card fraud.
Why do restaurants need to care about EMV?
Implementing EMV will help merchants reduce the risk of being held financially responsible when card-present counterfeit fraud liability shifts to merchants next year.
- Under the new rules, liability falls to the party with the least transaction security.
- Businesses with non- EMV compatible terminals will generally be held accountable for some of the associated costs of card fraud starting October 1, 2015.
- Petroleum businesses, specifically automated fuel dispensing payments at the pump, are the exception as some liability shifts for these types of transactions will not occur until 2017.
What should merchants consider when making EMV plans?
- Implementing EMV is a process and may require a financial investment.
- Merchants should start planning now so they will be able to accept EMV cards before the liability shift.
- The first step is to take a close look at existing POS systems.
Do I upgrade or buy new POS hardware and PIN pad devices?
- Review existing POS equipment or systems to learn if upgrades are possible or whether you’ll need to purchase EMV-compatible POS devices.
- Plus, don’t forget PIN pad devices.
- Chip and PIN card transactions are the most secure.
So what equipment do you have at your restaurant?
While these terminal are slowly being replaced by Integrated POS systems, they still make up a sizable percentage of payment solutions.
- The only job of standalone POS is to authorize and clear payment card transactions and it is the easiest EMV solution to implement.
- Is your POS device EMV compatible? (Does it have a slot for EMV cards?)
- EMV-compatible terminals have a slot, typically located at the bottom of the
- If POS EMV compatible, will you need to schedule a service call to have EMV
- Worldpay’s standalone EMV solutions:
- POS VX 520 terminal and VX 680 wireless terminal. A remote EMV software download will be scheduled before the October 2015 liability shift
Integrated POS systems.
Merchants using integrated POS systems should contact the independent software vendor (ISV) that supports the merchants’ business applications and POS system.
- Inquire when the payment processor’s EMV software will be ready and when the ISV will have EMV certification.
- The processor will inform ISVs or POS vendors what testing tools they will need to obtain
- Worldpay is currently working with its POS vendors and ISVs on testing and certifications
- Worldpay will continue to work with all our supported ISVs to add EMV functionality as quickly as possible. In some instances, EMV support may not be available until after the October 2015 deadline.
- Worldpay customers may contact Worldpay to determine the exact roadmap of the POS system used at location.
If you use a gateway for your card-present transactions, ask if the gateway is scheduling EMV testing and certification with your payment processor (like Worldpay).
- Note that eCommerce payment gateways, which operate in a card-not present environment, will not need EMV changes for the October 1, 2015, deadline.
- Please contact a Worldpay representative to determine the exact roadmap of the POS system used at your location
There’s a lot more to learn about EMV. This overview is designed to be a starting point. Check back frequently at worldpay.com for updates. Our goal is to present the information you need in a format that’s easy-to-read and understand.
As we lead up to the point of conversion, Worldpay is hosting a webinar for GGRA members to help GGRA members work through these and other issues that will come with the EMV conversion schedule. Sign up for the webinar here.