Do I Need a Chip Card Terminal?

Do I Need a Chip Card Terminal?
“The chip cards are coming. The chip cards are coming. If you haven’t already heard, the instatement of EMV cards is imminent in the US. It’s not the end of the world if you don’t start running with the rest of the lemmings right away, but you will be at greater risk for fraud liability if you process a counterfeit chip card come October 2015. For starters, EMV stands for “Europay, MasterCard and Visa,” which set out to create world-wide standardized protocols for so-called “Integrated circuit” cards and the hardware necessary to accept these cards. This was no easy task, but by 2005 – almost a darn decade ago – chip cards became status quo in the EU. These cards are manufactured with a small integrated circuit in the card. Payment data is read from this chip instead of from the magnetic stripe. First, the chip itself is more difficult and expensive to counterfeit. Thus, while info from a magnetic stripe can be “Skimmed” easily, chip information is much more complicated to glean. While the effectiveness of EMV cards in thwarting fraud is debated, this is kind of beside the point as far as we are concerned. If you want to keep on processing cards with the magnetic stripe and say screw it to the whole EMV protocol, you are currently free to do that. You won’t lose any business, since smart cards still have a magnetic stripe as a back up. The Timeline for EMV Chip Card Liability Shift in the US.April 19, 2013 – Maestro shifted liability for international chip cards used in the US.October 1, 2015 – Visa, MasterCard, American Express and Discover liability shift for POS terminals. “But no one is using chip cards, this doesn’t even matter.” Get ready to see a massive increase in chip cards at your register as the card networks begin to implement the change. There is always the chance that no one will ever present a counterfeit chip card at your register. Let us know what you think of smart “Chip” cards, and whether you’ll be upgrading your terminal.

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