Financing Your Business
Hot Topic: Understanding the Switch to EMV Cards
Business Owners Who Accept Payment Cards Are In for Big Changes This Year
There are three letters that may play a big role in protecting your business against fraud: EMV. This chip technology is becoming the global standard for credit card and debit card payments. Named after its original developers (Europay, MasterCard® and Visa®), it features cards with embedded microprocessor chips that store and protect cardholder data.
EMV chip technology differs from magnetic stripe card payments in a few ways:
- Transactions can be more secure when paying with a chip instead of a magnetic stripe. When the card is placed into a chip reader, the chip sends a unique code for each transaction that can only be used once. On a magnetic stripe, the same card number is stored and used repeatedly.
- Data from a magnetic stripe can be copied with an inexpensive device known as a skimmer. The thief can then put that same data onto another card, creating a counterfeit one.
- EMV chips can be harder to counterfeit, making it more likely that a chip-reading terminal will detect a fraudulent card.
Change is Coming
Beginning in October 2015, Visa, MasterCard, American Express and Discover will shift more of the liability for charges to merchants. Today, if a merchant swipes a physical card that appears to be valid and gets an approval, the merchant is usually not liable if the transaction proves to be fraudulent. Once the rules change, merchants will often be liable if they accept a chip card by swiping the magnetic stripe instead (many U.S. cards will have both chips and stripes for now).
Here are some resources to help you learn more:
Are you ready for EMV? As EMV cards become the norm in the United States, consider these ways to prepare your business for the changes.
Frequently Asked Questions About EMV Chip Technology: How is EMV different from magnetic stripe card payment? How will your business be impacted by the liability shift? And what do you do when a customer presents a chip card? Tips on chip-enabled cards and devices.
Preparing For The Transition to EMV Payments: Visa and MasterCard estimate that 575 million U.S. payment cards will include EMV chips by the end of this year. This white paper is a how-to guide on what you need to make the switch to EMV.
How a Tiny Chip Could Save the U.S. Billions: In this infographic we cover what you need to know about EMV chip-enabled cards, as well as how the United States has some catching up to do when it comes to fraud prevention.
EMV Takes Center Stage: Join Deanna Karhuniemi, EMV Strategist for Chase Paymentech, as she examines how EMV technology helps to reduce card counterfeiting and mitigate fraud for online and mobile payment channels.
Getting Closer to Your Customers with Mobile Wallets: Mobile wallet technology is becoming more popular every day. Here's how it might help your business.
Breaches and Chips: The Coming Revolution in Payment Cards: How to stay ahead of the curve when consumers are issued "chip and signature" cards.
For everything your business needs in one place, from news and expert tips to valuable products and solutions, visit chase.com/forbusiness.
Illustration by Mike Austin