Get your FREE EMV/NFC terminal today!
If you’re a US resident who has traveled to Europe within the last several years and used a credit card to pay for something, you may have been asked if your credit card was “chip and pin.” Prior to the last year or two, you probably responded either with “no,” or “what is that?”
This chip technology that has been prevalent internationally has now arrived in the United States and is known as “EMV,” short for Europay, MasterCard, and Visa. These cards include a microchip, which provides stronger security and stores information more securely than cards with just a magnetic stripe.
The EMV card is issued as either the aforementioned “chip and PIN,” or “chip and signature.” While much of the world is now on the chip and pin platform, United States card issuers are using chip and signature first, with the hope of shifting to chip and PIN. There are many benefits to EMV, in particular that they are more secure than magnetic stripe cards. Additionally, each transaction is assigned a unique individual code that cannot be used again. This is extremely useful in this age of data breaches such as the kind recently seen at some major retailers. By assigning the unique code, the data is basically useless to a thief because the information cannot be used again.
For business owners, it’s imperative to use EMV technology – the much discussed liability shift began October 1, 2015. What this means is if you swipe a card using the magnetic stripe instead using chip technology, the liability for certain types of fraudulent transactions shifts from the bank to you. Not only is it beneficial to use EMV cards, it can also prevent you from being liable for costly fraudulent chargebacks as well as any other costs associated with investigating and re-mediating the fraud.
The liability shift is not the only area of discussion regarding EMV cards. There is a lot of talk about EMV versus the technology called near field communication, NFC for short. This technology is found in services like Apple Pay, Android Pay, and other “digital” wallets. It is faster than EMV and it is tokenized, meaning the credit card number is replaced with a non-sensitive number that will prove useless to data thieves! To activate NFC, a customer simply turns on her smart phone and downloads the required application (ie. ApplePay, Android Pay, Samsung Pay etc…) to process transactions. The customer adds their credit card information directly to the app. Then, at the time of purchase, the customer only has to open the app on thier NFC enabled smartphone by either using a fingerprint or unique PIN code and holds the phone near the NFC symbol on the POS terminal. The terminal provides additional instruction for the customer, but there is no need for the customer to pull out her credit card. It’s as simple as touch and go!
The question business owners often have is “should I go EMV or NFC?” EMV is more secure than the old magnetic stripe cards and provides protections in the event of data breaches, but it is also a slower process than NFC. The cardholder still has to take out their card and insert their card into the reader. Because the technology is new, sometimes it takes people a bit longer to process the transaction. With NFC, the transaction can be quick – touch your phone to the reader and go. However, what happens when a customer’s phone battery dies? Or they drop their phone? A lost or damaged device equals lost revenue for your business if the customer has everything tied to a smartphone.
The solution? Simple! Ensure your terminals can accept both EMV and NFC! Many newer terminals offer the ability to do both kinds of transactions, and it may be cost effective to implement both at the same time. Being able to process secure transactions is a benefit for both you and your customers. Also, you will be avoiding the EMV liability shift if you’re using either EMV or NFC technology. And perhaps most important – your customers will be HAPPY because you have a payment method that suits them! NFC in particular is growing quickly – almost everyone has a smartphone these days and people love the efficiency, simplicity, and security of these transactions.
Let Bankcard Brokers send you an EMV/NFC capable terminal for FREE! Get started today with our fast and secure ONLINE APPLICATION – CLICK HERE!
Being a part of the Bankcard Brokers family means you are more than just a number – you are family and we will treat you with the world class service your business deserves!