As you know, Total recently announced we’re offering Ingenico Group’s terminals in our free terminal placement program. This means that merchants will now have devices that are EMV capable – delivering the latest in fraud prevention technology. It’s also important to note that effective October 2015, all U.S. merchants will have a liability shift for chargeback protection if they are not using EMV-enabled devices. So it’s a good idea for merchants to stay ahead of the curve on this.
But what does this all mean? Here’s a quick breakdown.
What is EMV?
EMV is the global standard for credit and debit cards, using an embedded microprocessor instead of the traditional magnetic stripe cards. It was developed in the mid-1990s by Europay, MasterCard and Visa, which explains the acronym. EMV-enabled payment systems, such as those from Ingenico, offer more secure transactions by scanning for and rejecting counterfeit cards.
What are the benefits of EMV?
The biggest benefit of EMV is the reduction in card fraud resulting from counterfeit, lost and stolen cards. EMV technology supports enhanced cardholder verification methods. Also, unlike magnetic stripe cards, EMV payment cards can also be used to secure online payment transactions.
Why is EMV needed in the U.S.?
While 27 percent of all global credit and debit card transactions take place in the U.S., nearly half of all credit card fraud is committed here. As other countries adopt EMV technology, fraudsters move towards countries that have yet to adopt the safer technology. Billions of dollars will be saved in fraud loss throughout the U.S. as we fully adopt and incorporate EMV terminals and processes here.
In our next post, we’ll discuss how EMV prevents fraud and the success of EMV in other markets around the world.