Soon “chip” or “EMV” cards, using smart technology providing enhanced security, will be replacing everyone’s magnetic-stripe cards. The letters “EMV” refer to the technology’s originating team: Europay, MasterCard and Visa.
Having a “chip” means that a customer’s payment method includes a tiny but powerful microprocessor, working around the clock to store and secure consumer data. The chip can’t be duplicated by criminals like a magnetic stripe card can, and it creates a unique code sequence for each individual transaction.
In order to promote this vital consumer protection, in 2011 the credit-card networks set a “liability shift-date” for U.S. financial card issuers to replace magnetic stripe cards with EMV cards and for merchants to begin accepting them. Starting October 1, 2015, card issuers or merchants that do not support EMV assume liability for fraud that results from compromised mag-stripe card transactions.
The payments industry is mobilized, working around the clock with merchants to meet the October 1 EMV shift and deploy newer and more secure technologies that customers are demanding. Throughout the EMV migration, consumers will continue to be protected, carrying zero liability for fraud.
The major card brands’ October liability shift date is an incentive, not a mandate. So, failing to implement EMV before October 1 won’t result in fines or an inability to conduct transactions.
Industry stakeholders are embracing technology and working with millions of merchants as they go through the different phases of EMV implementation.
ETA EMV EVENTS
PAYMENTS FLY-IN ON CAPITOL HILL
September 16-17, 2015
TECHNOLOGY OF PAYMENT SECURITY POLICY DAY
September 16, 2015
Holland & Knight LLP
CHIP CARD 101: EVERYTHING YOU NEED TO KNOW ABOUT EMV CARD TECHNOLOGY
October 1, 2015