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Lead Story

Fed looks to online real-time payments, eventually

Patti Murphy
ProScribes Inc.


Industry Update

Who's to blame for Apple Pay fraud?

Lack of EMV readiness continues, EMVCo steps up

Mobile World Congress 2015 extols innovation, inclusion

Visa Checkout used by 3 billion, plans worldwide expansion

Technology experts weigh in on future of POS


EMV 101 for merchants

Every second counts

What's trending in payments?


The bygone era of clicks

Dale S. Laszig
DSL Direct LLC

Embedding generosity in the fabric of payments

Thom Aldredge
World Gift Card

EMV implementation details urgently needed

Ken Musante
Eureka Payments LLC


Street SmartsSM:
Goodbye until hello

Tom Waters and Ben Abel
Bank Associates Merchant Services

Use big-data resources to better serve, retain merchants

Billy Hubbard

Mobile payments: Enabling merchants for today, preparing them for tomorrow

Michael Gavin

Company Profile

Signature Card Services

New Products

PCI-validated, comprehensive security package

SecurePCI Validated P2PE

Two-sided mobile solution for buyers, sellers

InvisiCorp., Inc.


A different sort of snow job


Readers Speak

Resource Guide


A Bigger Thing

The Green Sheet Online Edition

March 23, 2015  •  Issue 15:03:02

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EMV 101 for merchants

With just under 200 calendar days remaining until the Oct. 1 deadline for EMV (Europay, MasterCard and Visa) deadline, only 59 percent of U.S. POS terminals are predicted to be EMV-compliant by the end of 2015. Experts anticipate the U.S. migration will take at least until 2018 to be achieved — an adoption rate some onlookers feel is sluggish compared with the two-year transition several European countries accomplished almost a decade ago.

Who will be liable for fraud after Oct. 1?

Some believe accountability lies on the shoulders of the payments industry, where more efforts could be made to provide critical information to merchants about the pending liability shift scheduled to take place Oct. 1, a deadline that was imposed by the major card brands. This shift means that after the deadline (with the exception of automated fuel dispensers, which have until 2017 to become compliant) the party that causes an EMV transaction to not occur "will be held financially liable for any resulting card-present counterfeit fraud losses," Visa Inc. stated.

According to senior analyst, Thad Peterson, from Aite Group LLC, nearly half of all domestic merchants could be unaware of the liability they will assume. He thinks the industry could help to bridge the gap. “Every organization in the payments space needs to increase its efforts to educate and inform the merchant community about the importance of moving to EMV chip,” he said.

While it is highly unlikely the United States will be able to produce full EMV-compliance in time for the deadline, it is never too late to educate. Therefore, to provide our readers and their merchants with an easy-to-digest EMV snapshot, The Green Sheet relied on information published by our friends at the Smart Card Alliance and to answer several further questions in this article.

What makes an EMV card more secure?

Embedded in an EMV smart card is a tiny, rectangular computer chip. Unlike mag-stripe cards, which use the same data repeatedly, an EMV chip card produces a unique code every time it is used. It is expected this change will significantly help reduce the rising incidence of card-present fraud in the United States.

How do customers use EMV cards to make purchases?

EMV cards, just like mag-stripe cards, use two steps to process a payment: card reading and transaction verification. However, chip cards are read differently by terminals and will involve one of the two following methods:

Are signatures or PINs still required?

Depending on the verification method associated with the card, a cardholder will be required to either sign or provide a PIN as a second verification step. All EMV cards, including both credit and debit cards, will require a second form of authentication. "If a terminal doesn't have the ability to accept a PIN, it will then step down to accepting a signature," said Randy Vanderhoof, Executive Director of the Smart Card Alliance. "There will always be a secondary option."

Will EMV cards work in noncompliant machines?

Initially, all consumer EMV cards will have both chip and mag-stripe capabilities. Consumers are being advised to insert their cards first before swiping them. If a terminal cannot read the chip, an error will prompt the cardholder to swipe it instead. Alternatively, if a consumer attempts to swipe a chip card in an EMV-enabled machine, it will prompt the individual to insert the card instead.

Notice to readers: These are archived articles. Contact names or information may be out of date. We regret any inconvenience.

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Spotlight Innovators:

North American Bancard | USAePay | Impact Paysystems | Board Studios