“Ready or not here we come…” It was one of the most outstanding records in the 1990s but
today merchants seem to be singing to this Fugees classic. Well, it is not that they have
suddenly discovered some hidden talent in music but only that the October 2015 timeline
for the Europay, MasterCard® and Visa® (EMV) card switch is around the corner.
Whether you are a consumer or a merchant you must have come across this trending topic.
It sounds like a new technology yet the three companies actually developed this global
standard way back in 1994. It is a micro chip technology aimed at making Vis and
MasterCard plastics globally compatible while also enhancing security.
Behind the Hype
To fully appreciate what the EMV switch is all about you have to step back and get more
insight lest you get lost in the words being bandied around. For starters, this technology
shifts from the common magnetic stripes by embedding a microprocessor chip to store
sensitive credit card data.
With countries in the Asia/Pacific region, Canada and EU already adopting this chip
technology the Payment Networks’ have created a roadmap to do away with magnetic
stripes. This is considering that over half of all card fraud occurs in the U.S and more
importantly, the country is the single largest user of credit cards.
Reaping Big from Visa/MC EMV Switch
One of the most frustrating aspects of the magnetic stripe is of course the risk of fraud. For
years banks have borne the blunt of fraudulent transactions as they are forced to
compensate card owners. With the EMV switch everyone becomes a winner because as a
merchant you enjoy a lower credit card processing fee while banks avoid the
The fact that there is a liability shift during the changeover makes all the difference. As a
merchant you are expected to provide POS terminal within the deadline provided in the
timeline. In this case this is October 2015. What this means is that if any fraud occurs at
your point of sale the liable party will be the one that is less compliant with EMV
If the bank has not yet provided EMV cards to its customers it will be liable in this case. On
the other hand if you don’t have an EMV compliant POS terminal as a merchant you will
face penalties if any fraud occurs at your store.
By working with http://pymntadvisors.com during this changeover you will be able to
identify the best rates for credit card processing. Indeed some companies are offering
amazing deals now that there are fewer risks involved in POS terminals as opposed to
when magnetic cards were all the rage.
In terms of the initial set up fees you can jump on the current promotions where some
credit card processing companies are offering free EMV terminals to qualified merchants
again translating to savings during the shift.
There is no denying the limitless benefits of the Visa and MasterCard EMV Switch. It is time
to make the switch and start reaping these benefits.