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

transactions.

 

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.