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Tip No. 028 - Dealing with upcoming EMV requirements
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    Tip No. 028 - Dealing with upcoming EMV requirements

    by RetailEdge Moderator » Tue Sep 09, 2014 10:41 am

    Can RetailEdge handle EMV?

    We have been getting a large number of questions about the new EMV card processing technology (chip cards). This technology has been used in Europe and Canada for quite awhile and the US is in the process of adopting it.

    As you know we have been working with our credit card processing partners over the last year to provide added and more secure processing functionality. A part of this will be (when the equipment and infrastructure is ready) the ability to handle these chip cards. So the answer is we are ready. If you are using one of our credit card processing partners you will be ready too. In fact they should be able to provide you with a non-integrated EMV ready terminal now if you really want to embrace this technology. If you have questions about EMV, call them. Their contact information can be found above.

    The card industry is in the process of fleshing out the chip card process with consumer testing, issuing cards, etc. They will probably be sending lots of information out over the next few months about how to use these new cards.

    Why EMV?

    Two good reasons:

    1. Increased Security. Reducing fraud is always a good thing.
    2. The Liability Shift. As of October 2015, the liability for fraudulent transactions and chargebacks will shift from you to the card issuers. This means that any EMV-related fraudulent transactions at a merchant location will be covered by the issuers.

    Liability Shift Sounds Good But.....


    On the surface, this sounds great. But looking closer at the details, it may not be:

    1. To qualify for the liability shift you must process 95% of the EMV transactions you are presented with.
    2. Only EMV transactions are eligible for the liability shift. So if EMV transactions make up only 10% of your total business, the liability coverage applies only to that 10%.
    3. If you experience only one or two fraudulent transactions per year, and those have low dollar values, the cost of implementing an EMV solution may be higher than your fraud risk.
    4. If you are presented with EMV cards you must process the payment via the chip even if you can swipe the card.
    5. With customer facing terminal devices this leaves it up to the customer. If your customers are resistant to using their chip, it will decrease your acceptance rate and disqualify you from the liability shift.
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