October 1st wasn't the finish line….rather the starting line of EMV as the new normal.
Take these steps to become EMV® enabled now.
EMV has arrived.® Are you prepared?
As of Oct. 1, 2015, if your customers pay with an EMV chip card and you don't have an EMV-enabled terminal, you may be liable for any transactions found to be fraudulent.
It's simple: EMV can dramatically help reduce counterfeit and lost/stolen payment card fraud. Although the technology is relatively new in the United States, the benefits of EMV are too significant to overlook for long.
While the U.S. only accounts for 25% of the world's payment card transactions, more than half of all fraudulent card transactions happen here.
Losses due to card fraud in this country topped $10 Billion in 2015.
Credit card fraud rates have doubled in recent years, representing 10 cents out of every dollar transacted.
Fraud in the United Kingdom dropped 27% between 2007 and 2012, the years when EMV chip cards became widely accepted in that country.
EMV in the USA
617 M New EMV Cards
Industry watchers estimate that there will eventually be 617 million EMV-enabled chip cards in circulation in the U.S by the end of 2016.
By the end of 2017, 98% of all cards issued will be chip enabled.
As merchants adopt EMV technology and EMV chip cards achieve wider circulation, using chip cards will become second-nature to consumers. EMV not only helps you protect your business from potential liability, but also shows your customers that you care about the security of their data.
EMV represents a more secure future for card payments. It promises to reduce card fraud and counterfeiting, potentially transforming the payment processing landscape.
What makes EMV more secure?
Unlike magnetic stripe cards, EMV chip cards send data that changes with each transaction. EMV chip cards transmit a variable algorithm with each transaction, making the data more secure than the static data found on magnetic stripe cards.
- The consumer inserts the card into an EMV reader or taps it on a contactless terminal to make a transaction, with no hand-off of a card to the merchant and no swipe.
- EMV technology makes it virtually impossible for thieves to duplicate cards, thereby reducing card fraud at the point-of-sale.
- Only EMV-capable terminals can read and decode the chip card.
The impact of EMV on your business
The U.S. was the last member of the top 20 world economies to commit to a liability shift associated with chip payments. Named for the three companies that created it – Europay, MasterCard, and Visa – EMV is a tiny chip embedded in payment cards that is virtually impossible to counterfeit and offers stronger security than magnetic stripe cards. As adoption grows, consumers will increasingly use EMV chip cards in their payment card transactions.
Why EMV is important now
- As criminals recognize EMV implementations are underway, they look towards merchants that haven't adopted EMV technology and card-not-present merchants.
- Businesses still using magnetic stripe only terminals, are on the hook for fraud costs if someone uses a counterfeit or lost or stolen EMV payment card.
EMV arrived on October 1, 2015. But it’s not too late to adopt EMV technology.
Start by building your EMV Action Plan Today
- Talk to your First Data Relationship Manager
- You can review certified EMV-capable solutions, discuss multi-layered security options and learn more about how to help avoid chargebacks. If you develop your own solution, your First Data relationship manager can help you secure space on the EMV certification calendar.
- Perform a Cost Analysis
- Perform a cost analysis of what it will cost to update your location(s) to EMV capable solutions.
- Prepare your Location(s)
- Talk to your store operators and employees about EMV and what to expect.
- Develop a Marketing Plan
- Let your customers know that you care about protecting their data by promoting enhanced security at your location(s).
- Develop a Training Plan
- Ensure that every employee knows how the new Security and EMV capable solutions operate. In turn, employees will be better equipped to help customers use their chip cards correctly.
- Implement New Solutions
- Execute your plans for implementation, training and marketing. Use of EMV technology helps to minimize chargebacks and reduce potentially fraudulent transactions.
- Create an Ongoing Plan
- Work with your First Data Relationship Manager to continue to learn about EMV and enhanced security measures for your business.
Contact your First Data relationship manager or visit Firstdata.com/EMV for more information.
Get a head start with EMV migration with tutorials and implementation guidance that take advantage of global best practices.
EMV for Issuers
Get EMV information specific to the questions a financial institution might have about issuing chipcards and find out how First Data can assist.
EMV for Merchants
Learn from industry experts about the impact that EMV will have on the point-of-sale environment and how you can prepare now.