EMV Security

Posted on: May 18 2015 | Posted in: Latest News

Is your ATM EMV-Ready?  Some Facts You Need to Know About EMV Chip-Enabled Cards:

  • Most banks are in the process of re-issuing all cards
  • Chip cards increase security and minimize fraud for both you and your customers
  • Most of your customers will have these cards by October 2015
  • You can continue to accept cards via swipe until October 2016

What is EMV?
EMV chip technology, also known as ‘Smart Chip’ or ‘Chip and Pin’, is becoming the global standard for credit card and debit card payments for increased transactions security. Named after its original developers (Europay, MasterCard® and Visa®), this technology features cards with embedded microprocessor chips that store and protect cardholder data. It is used on all card transactions, such as point-of-sale and ATM transactions.

What is chip technology?
Chip technology is an evolution in our payment system that will help increase security and reduce card-present transactions. Chip-enabled cards are standard bank cards that are embedded with a micro computer chip.

What makes EMV cards different than the traditional magnetic stripe card? One of the biggest benefits of EMV cards is their security features. While magnetic strip credit cards are much easier to skim and copy, the opposite is true for EMV cards. The embedded chip in EMV credit cards encrypts data in a different manner with each transaction. Magnetic strip credit cards do not, and their data is more vulnerable as a result.  Data from a traditional magstripe card can be easily copied (skimmed) with a simple and inexpensive card reading device – enabling criminals to reproduce counterfeit cards.

Why should I upgrade to EMV chip acceptance now?
Merchants and banks are usually the big losers when it comes to credit card fraud, which means they will benefit from the switch to EMV credit cards.

In addition, when consumers feel safer and more protected, they may be more willing to use their cards at ATMs! Most ATM owners are performing their EMV upgrades in 2015 to avoid the possibility of rising costs and lower availability of parts as the entire United States makes this transition.

In addition, Visa, MasterCard, Discover and American Express have announced upcoming liability shifts for credit card transactions based on this standard. Any merchants or issuers who do not support EMV chip technology may be liable for the cost of counterfeit fraud. The term “Liability Shift” refers to the change in who is responsible for the chargeback related cost of fraudulent transactions. The timeframes for compliance are:

  • Credit Card terminals and cash register pay of sale systems need to support EMV by October 2015.
  • ATM terminals need to support EMV by October 2016 for MasterCard and October 2017 for VISA.
  • Petroleum pay-at-pump merchants need to support EMV by October 2017.

How am I impacted by the liability shift?

ATM owners that choose to convert to EMV will receive the same financial backing from the networks on fraudulent transactions that they receive today.  ATM owners that choose not to adopt EMV will be subject to a liability shift in the financial responsibility and will be responsible for covering those chargebacks. The liability has already shifted for MasterCard’s Maestro International transactions and you are subject to chargebacks at this time.

How is a chip-enabled card different from a traditional payment card?
A chip payment card looks just like a traditional card with an embedded chip in addition to the standard magnetic stripe on the back of the card. It is the same exact size as existing mag stripe cards.  What you see on the card is not the actual microchip but a protective overlay. The microchip provides an additional level of authenticity for the transaction.

What do I need to do to protect my business from fraud?

If ATMs of the South or ATM BankCard Services owns your ATM, then we are currently working on updating your ATM to EMV Ready and you don’t have to do anything.  We may have already converted your ATM to EMV.  If you own your ATM and provide the vault cash restocking, you should follow the instructions on the letter we sent you to upgrade your ATM to EMV.  Or simply call your customer representative or anyone at our office at 504-734-0205 to schedule your conversion.

Remember: Customers Can Feel Safer With Your ATM EMV-Ready! Let’s eliminate ATM skimming!