Things Merchant should know! - Payment Processing News

Things Merchant should know!

CB

If you’re a merchant accepting credit cards, you’re probably aware that things are changing. As of October 1st, 2015, merchants are now liable for any fraudulent activity that occurs as a result of non-EMV-compliant. For those Merchants who haven’t yet updated their POS terminal, you need to talk with your processor to get a new equipment.

Things Merchant should know to be EMV ready:

What is EMV Chip Cards? Chip Cards are standard bank cards that are embedded with a micro-computer chip. Some may require a PIN instead of a signature to complete the transaction process. The new cards will still have magnetic stripes, at least for the time being, so you technically can continue to process payments with the same old equipment you’ve been using for years. But by refusing to upgrade your hardware, you are taking on responsibility for any fraud that might have otherwise been prevented with the new technology.

How does EMV Chip Cards Work? Instead of swiping your card, you are going to do what is called card dipping, which means inserting your card into a terminal slot and waiting for it to process.

When a Chip Card or EMV Card is dipped, data flows between the card chip and the issuing financial institution to verify the card’s legitimacy and create the unique transaction data.

This process isn’t as quick as a magnetic-stripe swipe. It will take a little longer for that transmission of data.

What Must a Merchant Do? For merchants and financial institutions, the switch to EMV chip cards means adding new in-store technology and internal processing systems, and complying with new liability rules. Merchants who have not yet purchased new POS Terminal may be held liable for fraud as of October 1st, 2015. Implementing EMV technology isn’t an option, it’s a necessity. If you are one of those in the retail business or retailers using mobile payment devices who missed the Oct. 1st deadline, you are already at risk. Upgrading should be a top priority.

October 19th, 2015 by