Understanding EMV: Why Chip Cards Are a Game-Changer
Starting in October 2015, something big changed for businesses accepting credit cards. It was strongly recommended that they start using the new chip-and-PIN technology. Why? Because if they didn't, they'd be on the hook for any fraudulent transactions. This new system helps protect everyone!
So, What Exactly is EMV, and How Does it Work?
EMV is essentially a global standard for credit cards that uses a special computer chip to make transactions much more secure and significantly reduce fraud. The name EMV comes from Euro-pay, MasterCard, and Visa. The three companies that developed this standard over a decade ago. While it's been widely adopted elsewhere, the U.S. began its full transition to EMV on October 1, 2015.
That small, metallic square you see on the front of your new credit card? That's the micro-processing chip! This tiny chip stores secure information crucial for processing payments. What makes it so effective is its ability to fight against card cloning and skimming. Every time you use an EMV card, it's authenticated on the spot. This means that even if someone were to steal your card data, they couldn't use it again because each transaction generates a unique, one-time code.
Just like your old credit cards with the magnetic stripe, EMV cards work with a terminal at the point of sale. You'll either insert your card into the terminal or, for contactless payments, simply hold it close to a reader. During this process, data flows securely between your chip-enabled card and your bank, verifying that your card is legitimate and creating that unique transaction code
Europe has been using chip-enabled terminals for ages (about 99.9% of them!), and the United States was the last major market to catch on. The good news is that EMV has a proven track record of successfully limiting security breaches and counterfeit card fraud around the world.
For example, the Smart Card Alliance reports that 47% of global credit card fraud used to come from the U.S. However, in Great Britain, face-to-face credit card fraud dropped by an incredible 72% since 2004, largely thanks to EMV!
This technology doesn't just protect consumers; it also helps cut down on the huge costs associated with illegal credit card activity, which were estimated to be over $10 billion in the U.S. alone. So, by embracing EMV, we're all contributing to a safer and more secure payment system!
Effective 10/1/19:
In order to process card-present-swiped transactions (USB Swiper, CP Mobile Swiper & EMV Chip Terminal), our Retail merchant account is required and has merchant fees associated with it.
EMV Terminals come with a 30-Day Money-Back Guarantee. Items must be returned in new condition in their original packaging, postmarked within 30 days of purchase. There is a $50 restocking fee for each EMV terminal returned. Refunds (less the restocking fee) will be posted against the original payment within 10 business days of receipt of return. The merchant will be responsible for all return shipping fees. For assistance with returns, merchants will need to contact our Merchant Services Dept at (877) 343-8950 x105. There is a 1-year manufacturer's warranty for out-of-the-box equipment failure. Additionally, Cash Practice provides an additional 1-year warranty for out-of-the-box equipment failure (increasing the warranty period to a total of 2 years). If the terminal has failed within the warranty period and cannot be repaired, a replacement will be provided. In the event that a terminal fails after the warranty period but less than 3 years since purchase, a new terminal can be purchased at a reduced cost. Physical damage of any kind is not covered. The manufacturer does offer repairs on non-covered issues for a fee. Merchants will need to contact our Merchant Services Dept for assistance at (877) 343-8950 x105.
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