EMV payment technology is designed to protect buyers from the identity thieves and hackers that lurk in the background, wreaking havoc in our business. Today on our payment cards we see a magnetic strip which stores information that is consistent with every transaction. EMV uses a small metal chip inserted inside the card. The chip produces a different code for every transaction, limiting the potential amount of funds a thief could obtain when stealing the cardholder’s information.
How Does it work?
Instead of swiping your card, buyers will perform a process called “dipping”. The card is placed in a scanning machine that sends and receives data to the buyer’s bank. The dipping process is not as time-efficient as the traditional swipe, but the security benefits of having a unique code with every purchase will ultimately prove to be worth the wait. The next step in this process is to move on to the “near field communications” which will allow users to simply tap the card against a terminal to complete the transaction. (Chip & Pin has been in use in Canada for some time already and we have already moved on to the “tap” function with ease.)
What does this mean for my business?
A more secure EMV card means merchants will not have to pay as many charge-backs because there is less opportunity for fraud. When the transition to chip technology takes place, business that have not properly prepared for the change could potentially be held liable for fraudulent purchases when a counterfeited card is used on location. Overall, changing to EMV processing will save you money as well as give you peace of mind knowing that your transactions are secure.
How can I prepare my business for EMV (Chip & Pin) Processing?
- Start learning and train your staff on the product. You may not be ready to change to EMV yet, but the more you learn about it the easier the change will be.
- Consult with your merchant services provider. They will be able to direct you as to when and how the change will be implemented.
- Create a plan for your business. In conjunction with your merchant services provider, create a plan going forward as to how the change could affect your expenses, revenues and time management.
In today’s fast paced business market, this is the ground floor of a major change and improvement in combatting credit card fraud. As much as the transition to EMV seems to be costly and disruptive, in the long run it will provide peace of mind that your business transactions are secure.