26 Nov EMV – Are you making the switch?
You may have already heard about EMV or maybe you have already visited one of the eighty countries that have already migrated to the technology. Whether or not you are thinking of making the switch to EMV-compliant payment devices for your payment processing, get caught up on the facts after the jump. word
What is EMV and why does it matter?
EMV stands for (Europay MasterCard Visa), the companies who created the global standard for cards equipped with computer chips and the technology used to authenticate the chip card transactions. Payment transactions with chip cards are considered more secure because of the enhanced card authentication, cardholder verification, and transaction authorization.
Is EMV mandatory?
It is NOT mandatory that you (the merchant) convert your payment system to an EMV capable system. However, you must accept any chargebacks for transactions that are deemed to be fraudulent.
What is the difference between Chip & PIN and Chip & Signature?
Payment cards that comply with EMV standards are often called Chip & PIN or Chip & Signature cards. Chip & PIN requires a PIN to authenticate the transaction. All indications are that the US will adopt a Chip & Signature approach, which means a customer is able to insert their card into the payment terminal and then sign for the transaction on a piece of paper. Devices can be either tethered (connected to the POS terminal via an Ethernet cable) or portable (pay at the table).
Why should you consider a semi-integrated option with your POS?
Payment processors offer options for fully integrated payment processing (i.e. how processing is currently done in the US when a credit card is swiped through the POS terminal) and are now beginning to offer semi-integrated solutions. A semi-integrated solution moves the process of accepting and swiping a credit or debit card from the POS terminal to a payment device. Check information is passed to and from that payment device and the POS system; the payment device and its payment application does the actual processing instead of the POS system. A benefit to the merchant is that you may be able to minimize downstream requirements with PCI audits as the payment application could be outside of PCI scope depending on the solution you choose.
What approach is Squirrel taking?
Squirrel is adopting the semi-integrated model and is working with key gateways such as Merchant Link, Eigen, and Datacap. Keep an eye on this space as we announce when key solutions have been certified for Squirrel POS systems, which ensures check information is passed from the POS to the gateway or processor, with transaction completion then sent back to the POS.
What other information is needed to evaluate the EMV solution right for you?
Some questions to ask your payment processor and POS provider include:
- What EMV capable payment devices do you support?
- Do they support tap functionality?
- Do you offer a semi-integrated option? If so, what payment application?
- Do you offer both tethered and pay at the table solutions?
- What procedural changes will I need to make?