The nationwide payment’s network shift to the Europay, MasterCard® and Visa® (EMV) is
continuing though the deadline is on October 2015. EMV is the buzzword today and while
most financial experts have an idea on what it entails consumers and merchants whom the
shift is supposed to help seems apathetic to the hype.
Fuzzy Details on the Visa/MC EMV Switch
A study in May 2015 published on US Money showed that over 73% of household owners
have no idea about what this technology shift entails. Nevertheless a large number
appreciate that this is a more secure payment model in the face of increasing cost of card
fraud. A similar number of business owners cited lower credit card processing fee
compared to magnetic stripes as a benefit.
Well, as a conscious consumer or business owner it behooves upon you to understand what
the development is all about.
Here are some facts that will help demystify this new payment system:
1. The EMV Global standard
EMV stands for Europay, MasterCard® and Visa® and is a global standard for cards fitted
with a small micro chip instead of the standard magnetic stripe. This technology originated
from Europe and has been in use for almost 10 years. The whole idea is to allow for storage
of sensitive credit card data on a small computer chip within the card.
2. Is There a Timeline?
The fact remains that in the EU and Canada are already on the EMV bandwagon and of
course to create world-wide standardized protocols deadlines have to be set. The timeline
for EMV shift for Visa and MasterCard POS terminals is October 2015 and as a merchant it
is time to talk to the experts by visiting http://pymntadvisors.com to appreciate the
implications including a new payment terminal.
3. Liability Shift
As a merchant you have to abide by the timelines or else you will be exposing yourself to
penalties resulting from any fraudulent sales form your account. The issue of liability shift
during the changeover is also a big deal because whoever is found to be less EMV
technology compliant between the bank and the merchant will be liable for fraudulent
When you don’t accept EMV cards you will lose credibility in the eyes of your customers
considering they appreciate the need for these secure cards.
4. Why the EMV Switch
Whether you are a merchant or a household owner you will appreciate that card security
has been a major concern. With the FBI recording over 58% increase in such cases over
2013 to 2014 a technology to protect sensitive card information was already overdue.
The new Visa and MasterCard EMV card is harder to counterfeit unlike the magnetic stripe.
With every payment a unique payment code is created and if your card is stolen at a point
of sale the card would just be denied.
5. Other Advantages
Other than security, lower credit card processing fee has been cited as a reason for VISA
and MasterCard shifting to EMV. The initial cost of manufacturing the cards might be high
but as a merchant you will get incentive packages that will relieve your burden.
Well, there is so much to learn about the EMV technology but one thing is for sure, Victor
Hugo was right by saying that you can resist an invasion of armies but not an idea whose
time has come. Get on the bandwagon today.