What is an EMV Terminal?
You probably have heard a lot about EMV, but what is it exactly. EMV stands for “Europay, Mastercard, and Visa.” New cards that are enabled with EMV technology contain a tiny chip that is very hard to counterfeit. Instead of swiping these new cards, they will be inserted into the EMV terminal for the entire transaction so the reader and card can communicate. This chip is a secure microprocessor that generates a unique number for each transaction, which eliminates counterfeiting. This is great news but all the communication means that EMV transactions take a little longer to process, and if that is a concern, contactless NFC transactions are just as secure but are much quicker. Another way to speed up EMV chip transactions is to process them over the internet rather than a dial-up phone line.
EMV Terminal – Why Now?
The reason for the change is simple. Almost half of all the credit card fraud happens in the United States even though only a quarter of all the credit card transactions happen here. The banks want to put a stop to this, and the recent breaches at some of the country’s largest retailers have motivated them to move now. Most of the world has been using chip card technology for years, and since the US is the last major market to make the switch, it is high time that we complete this important step to ensure safer payment processing for everyone and move to the EMV terminal.
How will an EMV Terminal change your business?
First of all, you will need a new processing device that can read the information in chip cards called an EMV terminal. The deadline for this was October 2015. This means that any businesses that haven’t made the switch yet will be held liable if a customer uses a fraudulent card, and the business will have to eat the cost, not the bank.
PayJunction is a merchant service company that provides businesses with both EMV card reader technology and NFC contactless payment options through the Smart Terminal. Click here to learn more about PayJunction’s Smart Terminal.