What Do EMV and NFC Stand For?
What is EMV?
EMV stands for “Europay, MasterCard and Visa“. EMV will be the global standard going forward for contact and contact-less point of sale terminals, peripherals, and automated teller machines.
EMV allows cardholder data to be stored more securely, potentially reducing the number of fraudulent transactions resulting from counterfeit, lost and stolen cards.
Compared to a traditional magnetic stripe card, an EMV compliant chip card holds the same information, as well as information on how the card can be used and how the card can be verified.
How Does an EMV Chip Card Work?
The merchant must have an EMV capable terminal with integrated PIN pad, or have a legacy terminal with a EMV approved peripheral attached to allow for the require EMV PIN to be entered by the cardholder.
An EMV transaction occurs when a customer presents an EMV chip card, the card is inserted into the EMV approved POS terminal or tapped if the card supports contactless use, the PIN pad or terminal will then provide prompts to complete the transaction.
The chip-embedded card must remain inserted in the device during the entire transaction; the transaction will be cancelled if the card is removed before completion.
EMV will allow either a signature or a PIN to authenticate the cardholder. The smart chip in the payment device securely stores the chip and PIN information and processes to validate the integrity of the card number and certain data used in the transaction.
EMV Liability Shift Policies
Visa has given notice that it plans to shift liability in the U.S. for domestic and cross-border counterfeit transactions effective October 1, 2015.
The liability shift will encourage chip transactions, because any chip-on-chip transaction (a chip card ready by a chip terminal) provides dynamic authentication data and security.
The policy assigns liability for counterfeit fraud to the party that has not made the investment in EMV chip cards terminals resulting in atransaction with counterfeit card loss.
MasterCard has made a policy determination that the mag-stripe card as the least secure acceptance method, and chip-and-PIN as the most secure, with chip-and –signature falling in between the two.
MasterCard will be passing on liability for some forms of card fraud if the transaction was not processed with EMV.
POS Terminal/Peripheral Impact
All POS terminals/peripherals that are not EMV supported will no longer allow downloads by October 2015.
Terminals/peripherals that are not supported under EMV will move to a No Boarding status prior the EMV Liability shift in October 2015.
In light of these developments, merchants should start planning now to understand all considerations and impacts and to prepare for the industry change by implementing EMV compliant terminals.
These are the EMV Supported terminals and peripherals:
EMV Supported Solutions*
|FD130||Nashville/Buypass/Omaha||Integrated or w/ Optional FD-35|
|FD 130 DUO||Nashville/Buypass/Omaha||Integrated|
* The terminal information provided is to be used as a roadmap, and is subject to change at any time.
If your terminal is not listed here please contact me so we can discuss your options. Rick Montgomery 715-889-2409.