EMV is Here: What You Should Do Now

October 1, 2015 marked a major milestone in the credit card processing industry.

This was the official date of the fraud liability shift for EMV Chip cards that, under certain circumstances, may apply to merchants that have not yet replaced their magnetic stripe terminals with new terminals capable of processing EMV® Chip cards.

Many credit and debit card issuers are in the process of replacing up to 800 million magnetic stripe cards with new cards that are embedded with an EMV microchip. These new cards are more secure than mag stripe cards because they’re very difficult for thieves to duplicate. Also, a unique code is assigned to each transaction, helping to prevent thieves from stealing data at EMV-equipped merchant locations to make purchases.

Who’s Liable for Fraud?

The new EMV Chips cards being sent out also include a magnetic stripe so they can be read by non-EMV capable terminals. Now, however, under certain circumstances, your business can be held liable for losses due to fraud if your customer uses an EMV card but your terminal isn’t capable of processing chip-based cards.

The card associations will assign financial liability for counterfeit card fraud to whichever party causes a contact chip transaction to not occur. So if your point-of-sale (POS) equipment is not capable of processing chip-based cards, your business may be financially liable for the fraud.

Therefore, if you haven’t upgraded all of your POS equipment to new terminals capable of processing EMV transactions, you should do this as soon as possible. Doing so is easy — just call PNC Merchant Services customer service at 1-888-235-6959 and we will walk you through everything and explain how the upgrade process works.

How EMV Terminals Are Different

The new EMV-capable terminals feature a special microchip card reader in addition to a swipe reader. Your customers will insert their cards into the reader (chip side up) and follow the instructions on the screen, completing the transaction either by signing their name or entering a PIN.

Customers who want to pay with their smartphones using Apple Pay™, Samsung Pay™ or Google Pay™, meanwhile, need only to wave their phones near the terminal and follow the instructions on their mobile device to complete the transaction. It’s that simple.

Protecting your business from fraud liability isn’t the only reason to upgrade your POS equipment though. The new EMV-capable terminals will also enable you to take advantage of exciting new payment technologies. These include near-field communications (or NFC) and contactless transactions, which will enable you to accept mobile payments from your customers.

PNC Merchant Services stands ready to answer your questions about EMV and help you upgrade your POS equipment so you’re prepared to accept and process EMV Chip Cards. Don’t hesitate to contact us at 1-888-235-6959 if you have any questions or need any assistance.

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Important Legal Disclosures and Information

Merchant Services provided by PNC Merchant Services Company and are subject to credit approval. PNC Merchant Services is a registered trademark of The PNC Financial Services Group, Inc.

This Merchant Business Insights e-Newsletter is designed to provide useful and practical information for merchants accepting card transactions. It is not intended to be legal, tax, accounting or financial advice, nor should it be substituted for a full and regular review of the Association Rules and any changes thereto. Internet sites provided in this e-Newsletter are provided as a convenience to our readers. While PNC Merchant Services endeavors to provide resources that are reputable and safe, we are not responsible for the information, products, or services obtained on such sites.

EMV is a registered trademark in the U.S. and other countries, and is an unregistered trademark in other countries, owned by EMVCo.

ApplePay is a trademark of Apple Inc., registered in the U.S. and other countries.

Samsung is a trademark or registered trademark of Samsung Electronics Co., Ltd.

Google Pay is a trademark of Google Inc.