With October deadline looming, here’s a primer on EMV and how you can get ready
EMV, also known as “Chip Cards“, “Smart Cards”, or sometimes “Chip and PIN”, is a specification that defines a more secure method of payment. EMV protects against counterfeit fraud through the authentication of dynamic data that comes from the terminal, the transaction and the chip card itself (or other payment device such as a smart phone).
How it Works
EMV introduces a small computer or “chip” to every payments device. This chip stores information, performs processing, and contains cryptographic keys that generate a unique coded message with each transaction known as a “cryptogram”. This makes counterfeiting a card nearly impossible. Another important feature of EMV is the dynamic data generated with each transaction. This dynamic data prevents the replay of intercepted transactions as the same data would never appear in two separate transactions.
Benefits of EMV
EMV is designed to protect against counterfeit fraud through strong authentication and the dynamic data generated by chip cards, smart phones, and other EMV-compliant devices. EMV also provides risk management parameters at the card level and, when used with PIN, can offer protection against lost and stolen fraud.
EMV point-of-purchase technology works hand-in-hand with other products and services like Dynamic Currency Conversion, Point-to-Point encryption and PIN-debit and opens the door to implementing new features like contactless and mobile payments in which consumers have expressed interest.
EMV Liability Shift
Most of the world has either migrated to EMV or is in the process. The U.S. is one of the last developed countries to adopt EMV and global fraudsters know it. This has made the U.S. a prime target for cross-border counterfeit fraud. And while there are no specific mandates from the card brands that U.S. merchants must be EMV compliant, you will need to be EMV certified (or using pre-certified devices) by October 2015 in order to avoid being impacted by the counterfeit fraud liability shift that the card brands have put in place.
Vantiv is Here to Help
Vantiv was the first U.S. acquirer to complete MasterCard’s requirements to process EMV transactions for both ATM and Point-of-Sale (POS) locations, as well as the first acquirer in the U.S. to complete Visa’s and Interlink’s EMV requirements. Vantiv continues to lead the industry in its mission to be the most trusted EMV processor.
We know how confusing implementing EMV can be. So to help you out Vantiv has created Vantiv.com/EMV, a website dedicated to educating you and getting you ready for EMV. On the site you’ll find a series of resources including videos and white papers to help you understand EMV and be prepared for your migration.
The impact of EMV adoption to the entire payments infrastructure will be significant. From terminals to ATMs, and from card issuers to merchants, the time to start preparing is now.
If you have questions along the way, or want to learn more about how Vantiv can support your institution becoming EMV certified, click here to contact a member of Vantiv’s AZA Smart Source team.