As a consumer, you’re probably very familiar with EMV chip cards. You dip your credit card into the EMV slot and wait until the reader prompts you to enter your PIN.
But as a business owner, you may still be on the fence about investing in an EMV reader. Do you really need to upgrade to EMV-certified terminals?
This blog post will attempt to answer some of the most common questions surrounding EMV so you can figure this out for yourself.
1. How does EMV work?
EMV stands for Europay, Mastercard, and Visa. And EMV is actually a set of standards that governs how credit cards are processed.
Unlike traditional credit cards, which came with a magnetic stripe across the back, EMV cards have a computer chip embedded in them. The technology can be used for credit and debit cards and are often referred to as chip cards.
2. What are the benefits of EMV for merchants?
EMV technology benefits consumers and businesses alike. EMV transactions are more secure, so your customers’ information will be better protected. This will provide a better experience for your customers.
And because EMV and near-field communication (NCF) are complementary technologies, EMV also enables contactless payments. Contactless payments allow the consumer to swipe their card instead of inserting it into the reader.
Those are just a few of the reasons why EMV is considered the global standard for mobile payments.
3. How does EMV technology prevent fraud?
EMV cards provide more secure transactions because they are harder to duplicate. Traditional credit cards contained all the information in a magnetic stripe, which made it easy for hackers to create fraudulent cards.
In comparison, EMV cards store information in a smart chip that is encrypted to prevent data fraud. Since it’s harder for hackers to steal that information, EMV transactions are more secure.
Visa found that merchants who upgraded to EMV technology reduced their rate of payment fraud by 76%.
4. What are the consequences of not investing in EMV technology?
There is a significant financial risk to not upgrading to EMV technology. Your business will be held liable for any chargebacks due to credit card fraud. In 2018, payment card fraud hit $24.26 billion worldwide.
And if your business is hit with credit card fraud, it won’t just be the chargebacks that you’ll have to deal with. Your business’s reputation could be affected, and you could end up losing customers.
5. What equipment upgrades will I need to make?
Fortunately, you don’t need a bunch of new equipment to upgrade to EMV. All you really need is an EMV-certified reader.
6. How do I get started?
If you’re ready to get started with EMV technology, you’ll need to choose the right partner to help you upgrade your equipment. The right technology will be functional and state-of-the-art.
To your success!
Written by Brian Johnson