Shift Happens. What You Need to Know About EMV & The October Deadline

What You Need to Know about EMV & the October Deadline

Shift Happens.

CHANGE

is coming to the world of payments

U.S banks are issuing new payment cards with

computer chips to consumers.

Did you get yours yet?

U.S. merchants are being urged

to implement NEW chip-certified

terminals to accept chip cards …

in preparation for little letters that carry

3

implications …

EMV

WHAT’S

EMV?

A set of specifications for chip cards and devices

used for authenticating credit & debit transactions.

It’s named after its original developers:

Europay … MasterCard … VISA

ALL THE

BUZZ?

WHY

EMV chip technology is

proven to significantly

reduce card fraud

resulting from counterfeit,

lost and stolen cards.

Currently, when using magnetic

stripe cards, data is exposed, being

decrypted, and then encrypted several

times through the transaction.

Also, data from a magnetic stripe card

does not change. It is static authentication.

Because magnetic stripe

data doesn’t change, it can

be skimmed easily, leading

to fraudulent use and the

production of counterfeit cards.

EMV chip card technology,

on the other hand …

is more secure AND

therefore, reduces fraud.

Data passes through the same stops as the

standard methods, but is never decrypted, and

therefore, never exposed.

In addition to encryption,

each EMV chip card

transaction is assigned

a unique one-time-use

token, which is then

destroyed once the

transaction is complete.

SHOULD

YOU CARE?

WHY

At the moment, merchants

aren’t required to support

EMV in the U.S.

This WILL change

The nationwide shift will become REGULATION.

The shift to EMV also brings new liability rules.

It’s IMPORTANT to know this:

Starting October 2015, the institution with the

lesser technology will be liable for the costs

associated with card-present counterfeit fraud.

An Example:

If a merchant is using an old system, they can still

run a transaction with a swipe and signature.

if the customer has a chip card. they will be liable for any fraudulent

transactions if the customer has a chip card.

BUT

Conversely, if the merchant

has an EMV-enabled

terminal but the bank

hasn’t issued a chip card

to the customer, the

bank would be liable.

Merchants WILL NOT own the

liability for any transaction

where a chip card meets a

chip reader as the result of the

dynamic authentication it offers.

Merchants should make sure ALL their

terminals are EMV-enabled so they can accept

chip cards and properly protect their business

from risk and fraud.

In Summary:

WHAT HAPPENS

NEXT?

Our goal at Constellation Payments is to make

migration as easy as possible.

To that end, we’re well into our EMV migration

project — including the development of an

integrated terminal solution.

We’re currently in the process of certifying a

range of EMV-compliant terminals, from simple

countertop devices to more robust touchscreens

with greater functionality.

Once the certification process is completed, we’ll

supply the terminals to the clients of our channel

partners, as well as provide support options.

Our channel partners

WILL NOT have to go through the

EMV certification process

or certify their pathway.

You won’t have to do anything, but use the

simplified specs we provide for a quick and

smooth integration.

Specs are available at … labs.csipay.com.

Protect Your Business

From Risk & Fraud.

Call: 267.287.1035

Email: [email protected]

Contact us to learn more …