What is EMV?

EMV is the standard that allows chip and PIN cards to operate with chip-enabled terminals and ATMs.

EMVCo is a public company that manages, maintains and enhances EMV Integrated Circuit Card Specifications Standards.

• In 1999, EMVCo was founded by Europay International SA, Mastercard and VISA.
• In 2002, Europay International SA was absorbed into Mastercard.
• In 2004, JCB (formerly Japan credit Bureau) joined the organization.
• In 2009, American Express joined the organization.

EMVCo’s main activities are to:

• Ensure the compatibility and acceptance of chip cards globally.
• Develop an internationally recognized standard for chip-based payment processing.
• Test and approve processes that evaluate compliance with EMV standards.

How do EMV standards affect my business?

The introduction of EMV standards brings many changes that affect merchants around the world.

• EMV standards improve the customer experience. Customer information is protected by cryptographic algorithms, providing improved security between chip cards and chip-reading terminals during transactions.
• EMV standards can save you money. Since these standards improve the security of transactions, transactions that follow EMV standards can be subject to lower payment processing fees.
• EMV standards reduce your liability for fraudulent activity from lost or stolen payment cards. Notably, as of 2010, merchants without EMV compliant devices are fully liable for the cost of credit
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What is chip and PIN technology?

Chip and PIN technology is a way of authenticating a cardholder’s identity. An embedded microchip contains the customer’s information, and a four-digit PIN is used to verify the customer’s identity. In order for the transaction to be approved, the PIN must match the information stored on the card.

Chip and PIN card systems are based on the EMV standard, developed by EMVCo LLC, whose founding members included Europay, MasterCard and Visa. These standards enforce the use of certified EMV compliant POS terminals. EMVCo LLC defines chip card and chip-reading terminal requirements by auditing and certifying merchants for EMV compliance.

How does chip and PIN technology affect your business?

Chip and PIN technology will affect your business in several major ways. It will:

• Require EMV compliant software and hardware.
• Increase transaction speeds.
• Increase customer confidence.
• Decrease fraudulent chargebacks.

Software and hardware

Some merchants are frustrated to discover that recently purchased POS terminals are not EMV compliant. Check your existing contract to see if you are EMV compliant. If you are not, determine whether you can upgrade to EMV compliant POS terminals without breaking your contract.

Speed

Chip and PIN technology speeds up transactions because customers don’t need to sign a receipt. Faster transactions mean … Read more