EMV Terminals: Why do you need to upgrade in 2015

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• EMV stands for Europay, MasterCard and Visa and
  is a global standard for cards equipped with
  computer chips and the technology used to
  authenticate chip-card transactions.

By October 2015, new liability rules in the
United States will require restaurants and
merchants to make the switch to terminals that
handle EMV cards. To prepare for the shift,
merchants must consider new in-store technology
and internal processing systems.
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• EMV chip cards are manufactured with a small
  integrated circuit, or chip, inside the card.
  Data for each payment is read from the chip
  instead of the cards magnetic stripe. During a
  transaction, an EMV card is inserted into the
  terminal for the duration of the purchase to
  ensure the card is valid. The card can be removed
  when the transaction is approved and complete.

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• Instead of swiping the magnetic stripe on your
  card, EMV cards are processed for payment in two
  fluid steps card reading, then transaction
  verification. Chip cards are read by whats
  called card dipping, or inserting your card
  into a terminal slot.
• The dipping method takes slightly more time
  than traditional card-swiping however, EMV cards
  also support contactless card reading. Consumers
  know this method as tapping, as it asks them to
  tap or hold their card against the terminal for
  chip reading and payment. Merchants with
  significant foot traffic may consider contactless
  card reading to keep the checkout process quick.

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• Using chips instead of magnetic stripes have the
  potential to significantly decrease card fraud.
• Chips are unique, making them difficult to read
  and expensive to counterfeit.
• Each time the chip is read, a unique transaction
  code is generated that cannot be used again,
  which prevents info from being stolen and used
  over and over by criminals.
• Some EMV cards also use a pin number for added
  security (this depends on the verification method
  tied to your EMV card, not whether your card is
  debit or credit).

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• In 2005, EMV cards became commonplace in the
  European Union, followed shortly by Canada in
  2012. Though chip cards are now popular in the
  United States, they may be required for use by
  October 2015, with the full switch happening by
  2017. New liability laws will go into effect this
  fall.

The laws mandate that card-present fraud
liability will shift to whoever is the least
EMV-compliant party in a fraudulent transaction.
In many cases, this means the merchants not
following EMV protocol will be liable for any
counterfeit smart card transactions since,
theoretically, having the EMV terminal could have
prevented the fraud.
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• October 1, 2015 Visa, MasterCard, American
  Express, and Discover will enforce a liability
  shift for POS terminals.
• October 1, 2016 MasterCard will launch a
  liability shift for ATM usage.
• October 1, 2017 Visa, MasterCard, American
  Express, and Discover plan to extend new
  liability shift laws for pay-at-pump gas
  stations. The same will go for Visa and American
  Express payment at ATMs.

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• Yes starting in October 2015, the least-EMV
  compliant party will be liable for any
  counterfeit smart card transactions.
• With new regulations in place, merchants across
  the United States should review their
  point-of-sale systems and any in-store hardware
  and software.
• Small businesses may be able to transition
  quickly to EMV by simply adding a new external
  pin pad.
• Larger companies will need to plan and budget for
  upgrading multiple systems with individual
  terminals.

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• With the liability shift coming in October 2015,
  your business will need to be able to accept EMV.
  Only the latest machines can read and process the
  chips embedded in EMV cards. Leap Payments offer
  a variety of payment processing solutions
  including EMV countertop and wireless machines to
  meet the needs of any merchant environment. All
  Leap Payments machines also support credit,
  debit, gift cards, electronic checks, and all
  transactions types such as sale, void, refund,
  tips, etc. perfect for any business.

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• Leap Payments is dedicated to providing the best
  merchant credit card processing services in the
  industry. It is their mission to provide open,
  honest, and transparent payment solutions to help
  clients reduce their costs and get paid faster.
• For more info, visit http//www.leappayments.com/
  or call 800-993-6300.

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Sources

• http//www.leappayments.com/emv-the-future-of-card
  -technology/
• http//www.merchantmaverick.com/really-need-emv-ch
  ip-card-terminal/

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Summary

• By October 2015, merchants must make the shift to
  EMV terminals to avoid new liability laws. This
  presentation includes an overview of how EMV
  terminals work, and how to make the switch, plus
  info on how Leap Payments can help.