EMV helps prevent instances of card-present fraud by using a microchip to authenticate the card or cardholder. Since October 2015, retailers, and not payment networks, are liable for counterfeit card fraud if they haven’t implemented it. Yet, while the transition to EMV cards was a child’s play for big companies, smaller chains have yet to keep apace even one year after its introduction. J.D. Oder II, who boasts over 15 years in the payments industry at Shift4 Corporation (a payment gateway), gives some useful advice to powerless retailers on how to manoeuvre comfortably towards adopting this global standard. Here are four good answers to these frequently asked questions.
Why are you so late in processing EMV?
Many merchants are still up against a brick wall waiting for certification. If you are in the same situation, you can simply reply that you want to get on the train but the timetable is beyond your control. The certification process takes months, and the processors can’t keep up with the demand. Smaller retailers are consequently tumbling on the priority list of processors.
Smaller businesses are processing EMV. Why can’t you?
Because it’s better that you wait for the real deal. Most of these small businesses have opted for a simple non-integrated EMV payment solution. It is one where the Point of Sale system and the EMV payment terminal are not connected in any way. This adds a time-consuming and error-prone extra step in the sales process, which is a risk not worth taking.
Does EMV guarantee payment security?
No. EMV is not a universal remedy against data breaches and any ensuing fraudulent transactions. EMV is an additional security solution, not a complete security solution.
Can it be safer?
Yes, a best practice is to use EMV with point-to-point encryption (P2PE) and tokenization. This constitutes the payment security trio. With these three technologies working together, merchants are able to protect their customers’ card data all the way. P2PE is a vital layer of security for any card-present payment processing environment, including mobile points of sale. It encrypts card data at its first point of interaction with the payment terminal. By doing this, the actual card data never travels through the merchant’s payment system, so it stays safe. Tokenization replaces card data with a random alphanumeric value, or token, for storage. This token doesn’t isn’t related with the card number and, therefore, would be impossible to decode and use for future fraudulent transactions in case of a data breach.
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