The USA is finally catching up to the worldwide standard of using “chip” credit cards that have been used in the rest of the world for years. Today, I’m giving you facts about EMV cards, the switch from non-EMV credit cards to EMV credit cards, and how it affects your Silhouette business.
10 Facts About EMV Credit Cards
- EMV stands for “Europay, MasterCard, and Visa”.
- The switch to EMV cards is mandated by MasterCard, Visa, Discover and American Express.
- EMV credit cards have tiny computer chips in them that are extremely difficult to counterfeit.
- The tiny chip inside the EMV cards is a mini computer that performs extra security checks while validating the transaction. Each transaction becomes unique, which is how the security is increased.
- EMV credit cards are inserted into the credit card reader rather than swiped.
- EMV cards are also able to be used with NFC technology. NFC stands for “Near Field Communication”. This means that with an NFC capable reader, EMV cards can be tapped against the reader to complete the transaction.
- You will need to update your business’ credit card reader to be able to accept EMV credit cards.
- The liability of credit card fraud has switched from the bank/credit card issuing company to the business if they are not using EMV enabled card readers. This is important because if a customer pays you with a fraudulent chip card, and you do not have an EMV card reader, your business is liable for the fraudulent charges – not the bank. This liability shift only applies to transactions where the card is present.
- EMV cards can be swiped using the magnetic stripe at retailers that are not equipped to handle EMV transactions.
- Processing an EMV card transaction takes a few seconds longer than a magnetic stripe card.
What Should You Do?
If you sell your Silhouette products in person, you need to order an updated EMV card reader for your business. The liability shift for in-person EMV card transactions went into effect on October 1st. I waited until the dust settled on the switch to post this information. Just so you know: In the event that you have a fraudulent transaction with an EMV card after you have ordered your EMV card reader, but before it arrives most credit card reader issuers will cover your liability. You can read more about various credit card readers in this post.