What is EMV?

EMV (an acronym for Europay, Mastercard and Visa) is a technical standard that has recently gained global popularity in the payment industry all across Europe and other nations. The underlying philosophy of EMV is the use of upgraded payment technology with future proof peripherals that will accept chip-and-pin based EMV cards. This technology usually comprises of tiny microprocessors embedded in the payment devices (e.g. mobile or a smart card) which upon the insertion into an EMV enabled POS terminal or peripheral execute a payment transaction. These standards ensure the authentication of each and every payment being executed thereby preventing any fraudulent or faulty transactions. Contrary to the traditional magnetic stripe cards which are widely being used in the U.S., these smart cards store cardholder information in a chip embedded in the front. These smart cards offer greater security and multiple functionalities which are otherwise not offered by the magnetic stripe cards. EMV transactions are 53% faster than the traditional transactions via magnetic stripe cards. While the EMV standards are widely implemented in Europe and other nations, the U.S. is still in the early stages of a complete migration.

“These EMV standards are going to be a change in behavior that restaurants and retailers are going to have to adapt to, as well as consumers,” says Mike English, executive director of product development for Heartland Payment Systems, which processes about one in seven restaurant industry transactions

Liability Shift

Under such circumstances the payment industry will witness a liability shift. In case of a fraud the financial institutions will no longer be held accountable and pass on the liability risk to the acquirers instead. To ensure a successful liability shift both the cardholders and the merchants will have to be thoroughly educated about the technical aspects as well policies.

Therefore to ensure a smooth and effective migration in the U.S., by October 2015, all restaurants and other merchants who have previously been using the magnetic-stripe credit cards for payment transactions will be subjected to the new EMV. Compliance with the new EMV standards is mandated for all credit card acquirers and processors and those unable to meet these requirements by the due deadline will be held liable for strict legal action against fraudulent purchases.

EMV™ : Part of a Broader Payment Security Strategy

For the Merchant:
These EMV standards are a part of an extensive and multi faceted security plan that calls for the successful implementation of a reliable and secured payment transaction system all across the globe. Under this comprehensive security plan the merchant’s will be liable for upgrading their current POS terminals and will bear all the costs of such an upgrade. The cost of implementing EMV standards will be determined by the quality, functionality, features and form of the EMV enabled terminal. Fraudulent transactions occurring in the absence of an EMV terminal will hold the merchants legally accountable. Deployment of EMV will also call for certain structural and procedural changes. The merchants will be responsible for educating their customers who are still unfamiliar with smart card transactions at the POS terminals.

EMV Protection at the POS

The benefits of migration to the new EMV payment standards for the merchants are manifold. Upgrading their current POS systems to comply with the EMV standards, the merchants will be able to build a future-proof infrastructure that will support the latest innovations in the payment industry, minimize the risk of security breaches and help gain global acceptance for this emerging technology.

EMV Technology Benefits for Merchants

Through EMV enabled credit cards the merchants all around the world will be able instantly identify and prevent counterfeit card transactions. A wide scale implementation EMV technology will help the merchant verify the cardholder’s identity and make it virtually impossible for anyone to copy the PIN codes or misuse credit cards.

EMV technology will offer the following benefits for the merchants:

  • Eliminating the risk of POS skimming
  • Use of PIN/signature for a thorough verification of the cardholders
  • Prevention of lost or stolen card transactions
  • The flexibility to use contactless interface for payments
  • Increased foreign revenue

EMV technology will offer the following benefits for the merchants:

  • Accepting EMV enabled foreign cards
  • Improved payment security
  • Faster transactions with reduced check out times

EMV-Capable Point of Sale

Smart businesses all across the globe are in search for improved and cost effective ways to adopt to new and innovative technology standards. SAJITON will ensure these businesses find the ideal solutions to their operational needs. An investment in our EMV enabled terminals/peripherals will help you fool proof your transactions systems and attain a fast, flexible and extremely secure alignment between your POS and consumer facing devices.

For The Issuer

Increased Fraud Protection and Cardholder Usability
A successful migration to First Data’s chip-and-pin based EMV technology will facilitate various financial institutions to accept foreign cards and help the merchants gain increased acceptance in the U.S. this transition towards the EMV standards will include important issuer decisions such as:

  • Selection of card interface ( contact, contactless or dual)
  • Selection of a reliable card authentication method
  • Selection of a secure and efficient transaction authorization method
  • Selection of a systematic cardholder verification method
  • Selection of an effective PIN management process

Chip Technology Benefits for Issuers

EMV enabled technology yields the following benefits for the issuers:

  • Protection

    Chip Technology Benefits for Issuers

  • Refunds

    Helps minimize faulty consumer refunds

  • Multiple options

    Multiple options for cardholder verification

  • Skimmimg

    Reduce skimming at point-of-sale transactions

Smart card technology will also help issuers satisfy their customers by offering:

  • Secure

    Secure and thoroughly supervised payment system

  • smart-tech-2

    International card acceptance policy

  • Faster

    Faster transaction time for debit/credit purchases

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