Benefits of the New EMV System

 

U.S. adoption of the new EMV merchant card services system is slated for October 2015, marking a turning point in the fight against credit card scam artists. Financial institutions, credit card companies, and major retailers have worked tirelessly to bring about the change. EMV credit card compliance is the next step.

How Does the New EMV System Work?

The EMV merchant processor reads data stored in chips attached to upcoming EMV-compatible credit cards. These chips will simplify payment processing and grant both merchant and consumers a much-needed security upgrade. Countries across Europe, Asia, and the Americas are already well into the adoption process, with the United States following suit. The new machines will phase out the swipe and scan magnetic readers that remain prevalent across U.S. merchants.

Benefits of the New EMV System

Improved Security

The United States is home to nearly half of global credit card fraud while housing only a quarter of the world's transactions. Fraudsters have recently hacked into credit card processing systems at such major retailers as Target and Home Depot, snagging tens of thousands of customers' credit card numbers and PINs. The new EMV system will have customers insert their credit cards into a slot, where the system will scan a microchip. The system retains support for PIN numbers and removes the vulnerabilities of outdated swipe and sign machines. That means fewer credit card chargebacks and merchant account fees.

Convenience

The new system marks not only an evolution in security, but also in user-friendliness. Customers will soon be able to make payments from chips attached to their smartphones or key fobs. Contactless functionality speeds up transactions without sacrificing security. Adopting EMV-enabled cards and devices marks a step forward in mobile functionality and ecommerce. It's all about moving toward the future, and it won't be long before merchant services offer even more benefits for customers.

Reduced Costs

With a wave of ATM manufacturers changing to the new EMV system, merchants won't have to pay as much to switch over. Cards equipped with chips also last much longer than their magnetic stripe counterparts and can receive instant wireless updates, cutting long-term costs. Merchants who make the shift to EMV can also earn rewards from VISA, helping cover the expenses.

Is Your Business Ready to Make the Change?

While merchants aren't required to make the change, the October 2015 deadline brings with it the risk of liability. After the date, merchants will be held responsible for any fraudulent activity occurring on their legacy magstripe systems. Some businesses can afford to wait with minimal risk; others must plan to make the shift as soon as possible. Companies that make the shift can also gain an advantage over competitors, especially in markets where it's hard to stand out.

 


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