October 2015 was the start of required EMV transitioning for most merchants in the United States. Some exempt merchants, including gas stations, have until December 2017 for compliance. MasterCard is reporting that with about 40% of all Us merchants having switched over to EMV, they have seen a drop of credit card fraud in the area of 54% in the last 11 months. That number can only go up as more merchants adopt the EMV technology for their businesses.

Conversely, fraud costs among those merchants who have not upgraded to the EMV technology, have seen an upswing of 77% over this time last year. The crooks, and hackers know who is not compliant and they are taking advantage of this situation as long as they can. Brian Riley, director of the Credit Advisory Service with Mercator Advisory Group, said: “Payment cards are an essential part of commerce; EMV requires a change to the customer experience as the industry shifts from swipe to chip.

There is no doubt chip cards will curtail fraud, and it is exciting to see enhancements at the point of sale that will propagate usage, reduce friction and accelerate transaction time.”

Remember, using EMV cards will not prevent all types of fraud, you still have to be on guard, but it will cut down on the majority of fraud resulting from breeches of data, and those devices that skim from the outside of Atm’s. Card holders still have to remain very aware of their personal data, malware attacks on their personal computers and phishing schemes through email. Never open an email that you are not sure of the sender, and do not open unfamiliar links. This can lead to serious loss of data and personal income if you are not vigilant.

That being said, EMV processing is not the way of the future, it is here now. It is a requirement of all small businesses, and will, in the long run, save your business time, energy, and money if you start using immediately.

In just a few months after the official deadline for the shift from the traditional magnetic stripe to EMV technology and the shifting of the liability, roughly 37 percent of USA merchant stores adjusted to the technology. Following this, different surveys estimated that most of business and consumer will have adopted the EMV technology by the mid this year (2016).  However, this seems not to be the trend. Despite the industrial-wide effort to pressurize the shifting to the EMV chip-card through liability shift, some business seems not to get the message. The liability shift meant that the merchant liability to the fraudulent transaction was shifted to the credit card issuers and bank since the bank can take extra precaution before a transaction is processed. It is of great benefit that all the merchants in the U.S. understand the consequences and the risk of delaying the EMV migration. Since October 1, 2015, credit card accepting merchants may be held financially answerable for fraud transactions if it is proved that they committed some error while processing the transactions with the chip cards.

There is still a significant number of merchants and consumers who have not adjusted to the EMV chip-card technology.

Why the low percentage of EMV adoption in U.S.

There are a couple of answers behind the low adjustment rate to the EMV technology. One of the reason relates to financial issues. The U.S.A has had a long history of credit card processing and had been the leader in credit card technology for a long time. This reveals that a lot of money was poured into the states’ credit card processing infrastructure and the issuing process. Therefore, return on investment on current technology trumped an immediate move to EMV. Merchants who had just bargained for magnetic swipe technology some months before the Oct 1st must be finding it difficult to adjust to the EMV technology. But it is much beneficial, if you, the business owner, evaluate the advantages of the EMV in combating crime and liability shift rather than valuing the swipe technology.

Another reason for the low adjustment rate relates to cultural issues. Most U.S. cardholders are used to the swipe. It is a quick transaction; completed by just swipe and sign. The EMV transactions take a bit longer. The merchants are hence reluctant to shift since this will force consumers to change their payment practices and this might also slow the efficiencies during check out. But to be on the safe side if you are a merchant you should understand the quick swipe technology increase the chances of fraudulent transactions since there is no time for bank verification of the legitimacy of the card.

With the EMV chip technology fast becoming a world standard, it is necessary to ask yourself some questions: Are you aware of the types of EMV card transaction authorization methods? How are EMV chips authenticated at your POS checkout systems? An onslaught of EMV information entwined with information on the mobile wallet (which is contactless) has confused quite a number of merchants and customers. As a merchant, you need a payment system that is EMV-capable and which can then handle the different authorization procedures for EMV card transactions as well as handle the authentication process.

 

How to Authorize an EMV Card Transaction

 

Although the chip-and-PIN method is the best-preferred method, the gold standard in EMV card transaction authorization, there are in fact, three methods of authorizing a transaction with EMV chip cards:

The Chip-and-Signature: Also known as the chip-and-sign method, once the transaction is completed at the POS terminal, the customer signs for it much like in the case of the traditional magstripe card transactions.

 

The Chip-and-PIN: In this case, the cardholder is required to create a secret PIN when activating the EMV chip card. This PIN is then used on the POS terminal by the customer to authenticate a transaction. The chip-and-PIN card is more secure as in case the card is lost or stolen; it can not be used without the required PIN. While widely used abroad, in the U.S., only a handful of card issuers and financial institutions are reportedly issuing this type of card to their customers.

 

The Easy Pay/Self-Serve: In this type of authorization the EMV chip cards can be used without the associated PIN or Signature. Such transactions are categorized as small and easy to pay such as buying small tickets or paying for gas at a gas pump.

 

 How to Authenticate (Read) An EMV Card At the POS Terminal

 

While the traditional magstripe card used swiping through a card reader to authorize a transaction, the EMV chip card generates a unique code for each purchase the customer. Instead of swiping. However, several methods may be used to read an EMV card:

 

Card dipping: In this method, the EMV card has to be in contact with the card readers in a process called card dipping. Here, the customer inserts his card into a slot in the EMV card reader and leaves it there authorizing the transaction by confirming through the reader’s interface. Once the transaction is authorized and completed, the customer then removes the card.

 

Tap to Pay: In this the method, the customer would load their card information to their NFC-enabled smartphone then hold it near a contactless EMV reader where transaction data is transferred to the reader using radio frequency method. However, this method has not picked up due to security concerns and the prohibitive cost of implementation for card issuers and merchants.

 

Dual EMV chip: This is a card that can support both card dipping and tap to pay methods.

Did you know that the US is one of the last developed countries to adopt EMV chip cards? In most developed countries chip cards have prevailed for a long time. This means that were you to travel abroad without one; you would be hard pressed to find an outlet that accepts chipless cards as payment. You need an EMV chip card. However, even with the EMV card, don’t be shocked if foreign merchants occasionally refuse payment especially if the card is a chip-and-sign instead of a chip-and-PIN type. The merchant could also make a decision to accept only cash from foreigners and in such a case it is out of your hands.

Traveling abroad is a memorable experience that can also be a challenging and expensive affair. You may find yourself running out of cash and in such cases, having a card that can be accepted abroad is a plus. It could save you from embarrassment as well as numerous headaches that come with being in a new place without the money to fully enjoy yourself.

However, you can minimize your chances of card rejection by merchants abroad. Getting a widely accepted credit card such as a Mastercard or Visa brings you one step closer to acceptance. Making sure that your card is a chip-and-PIN card cements its credibility and increases the chances of the card being more acceptable by foreign merchants. European countries in particular, most if which adopted the EMV technology ages ago, rely on the chip-and-PIN technology. Countries like the Netherlands have fully adopted PIN chip cards.

Due to the campaign for chip-and-PIN cards in the US, more financial institutions and credit card issuers are rolling out the credit cards. However, you may not have the luxury of putting a hold on your travel plans to wait for a chip-and-PIN card. And come to think of it, you may not have thought a smart credit card would be a necessity when making your travel plans. The only option is to head over to one of the few U.S. banks that currently offer PIN cards.

So where are you likely to use PIN card? For most travelers, a smart PIN-enabled card is most important when on toll roads or a gas station outlet that may be cashier-less and whose only payment option, automated machines, requires a chip-and-PIN card. Other places such as luxury shops, restaurants, and hotels often bend the rule and accept magstripe or chip-and-sign cards, but most small businesses will refuse to accept them entirely and instead prefer cash transactions.

Again, if you are traveling but have not managed to get yourself a PIN-enabled card already, you can still travel and have fun using cash as well as take advantage of places that may accept your card. In the meantime, acquiring a Wells Fargo Propel World American Express card or the Barclaycard World Elite Mastercard will take care of your smart PIN-enabled card needs for the coming glorious summer travels.

Credit card fraud has always been the bane of credit card accepting merchants. Indeed, there have been several high-profile cases of fraud in the recent past that keep the credit card industry on its toes trying to come up with advancements and innovations that can minimize fraud. Well, they have succeeded somewhat, for card present fraud can now be minimized by EMV chip technology. However, EMV is not exactly new. Just new in the U.S. While there are numerous cases of credit card fraud, most fraudsters are never apprehended due to the difficulty of tracking the cases. However, a few famous cases of credit card fraud have been in the limelight.

 

Target

The holiday season welcoming the year 2014 saw Target on the receiving end of a computer hack where hackers stole the credit and debit card information of more than 70 million of its customers. This not only damaged Target’s bottom line because the company faced class action suits and was required to issue new cards, but also posed a threat to the customers who were now more vulnerable to identity theft and fraud.

 

The Alberto Gonzalez’s Case

One famous fraudster who found himself woefully on the wrong side of the law is Alberto Gonzalez, a computer hacker. Gonzalez masterminded several hacks including hacks on TJX companies, Barnes & Noble, Heartland Payment Systems, and Sports Authority among others. It is estimated that he stole more than 45 million credit card numbers before he was caught in Florida after eluding the law for a long time.

 

The Biggest Cyber Crime Case of 2013

In 2013, the long arm of the law caught up with five Russian and Ukrainian men who had executed a series of credit card fraud crimes that cost the companies an estimated $300 million. The companies which were targeted in the breaches include Nasdaq, JC Penny, Carrefour SA and Jetblue Airways. The hackers, Drinkman, and Kalinin liaising with Kotov, Smilianets and Rytikov stole credit card information while evading detection by turning off their victim’s anti-viruses. They then disseminated these credit card numbers enabling a circle of crime that ran into hundreds of millions in losses.

 

Even with EMV chip technology, it is important for cardholders to be vigilant when it comes to their credit card information. While EMV cards may reduce card present fraud, they do nothing for online fraud and scams. To minimize your chances of being hacked, install the latest anti-virus and security software and keep it up to date. Making sure that any site where you enter personal information has an encryption sign, using different passwords and cash on delivery options as well as buying from reputed sites while ignoring phishing email, will go a long way in boosting your security.

For a long time, the use of the Magnetic stripe card had been a culture in the USA. However with the ever increasing cases of credit card fraudulent cases, credit card issuers and most American banks advocated for the adoption of the New EMV technology that stands at a better ground in identity crimes. This being a new technology shifts in the U.S.A, some merchant services providers are convincing merchants that, for some security considerations, all the EMV purchases must come directly from one’s credit processing company.

The main reason why you should not get worried when bargaining for EMV chip-card reader is that the terminals have a very effective inbuilt anti-tampering features. Therefore, the chances bargaining for a counterfeit machines or a programmed terminal is very minimal. The anti-tampering features ensure that the machines are rendered useless and non-operational if any ones try to reprogram them. However don’t use this as a justification for the legitimacy of the EMV card readers. There are possibilities that some fraud/fake terminal might get to the market programmed to steal funds from the merchants or the customers. Why am I arguing from this perspective? This is simply because the current shift in computer technology is proving that nothing is impossible. With the reduced chances of fraudulent transactions when using the EMV chip-card technology, there is the likelihood of the alternative ways of stealing from the credit card. Who knows! Identity criminal has to survive. Therefore, you should take precaution when doing your EMV terminal bargain. Always confirm that you are dealing with a reputable and licensed seller, just as you would do when bargaining for any sensitive electronics products.

Do you need NFC to have your EMV-Compliant Credit Card Machine?

The best clear and brief answer for this is a “No.”  NFC (Near Field Communication) is the technology behind Apple Pay as well as other digital wallets to conduct contactless payments. It is very crucial for fast-paced business as it adoption has increased among consumers. However, most businesses don’t have any use for it even in their foreseeable future. So, if your businesses don’t have any use for it, there is no point of your bargaining it from the merchant services provider who convinces the clients to opt for the NFC EMV terminals. This might be for their financial benefits since the NFC EMV terminals are considerably more expensive than the standard EMV terminals. Mind your business expenditures and opt for the most pocket-friendly deal if you are convinced that you are purchasing from a genuine. Don’t be worried by the increased preference of the contactless transaction; you always use a separate NFC reader rather replacing your existing EMV terminal.

EMV Chip Technology vs. Magnetic Strip Technology
Traditional cards feature a magnetic stripe which contains the numbers associated with your account. At the point of sale, these cards are swiped across a credit card reader which then generates a code that is sent through the system or network to authenticate the transaction. Unfortunately, the same number is generated for each transaction which makes it easy to forge or steal data in case a fraudster hacks into the system. That is why the traditional system is vulnerable due to its static nature. On the other hand, the EMV chip technology is dynamic and very safe to use. The microprocessor chip generates a unique code for each purchase making it almost impossible to hack account information during payment. Instead of swiping, however, a method touted as card dipping is used which involves the customer sticking the card into the slot and the leave it there to approve the transaction. Therefore, though someone could try and steal data, it is useless to them as they cannot use it for another transaction.
How about Chip-and-PIN cards?
In Chip-and-PIN cards, data is more secure as a pin is used instead of a signature which may be forged. However, these cards work on both swipe and slot and if the retailer is not EMV enabled, your data is just as vulnerable as that of a magstripe card. The new card readers support both processes, and once you swipe, you are directed to insert the EMV card into the slot. Unfortunately, most financial institutions have stuck to the Chip-and-Sign card which only requires a signature for authentication. You can take it upon yourself to request for PIN inclusion from your card company. Not only is it more secure, but also enables you to use your card abroad. Just ensure that you do not forget your PIN!

Best Practices When Using EMV Chip Technology
Using EMV should not make drop your guard. Merchants having been given an incentive; of the carrot and stick nature, where if they have already complied and switched to EMV capable systems, they are not liable in case of card present a fraud. And if not, they shoulder the responsibility. Sadly, some have opted to take their chances, unwittingly inviting fraudsters to take a shot. Being vigilant when it comes to your retailer’s payment processing is crucial. Also, monitor your statement to detect any charges that you did not authorize as the EMV chip cards do nothing for online and telephone (Card Not Present) fraud. Fraudsters have turned to this and can use your card number to make such purchases. While there are still some dissenting voices and skepticism as to the ability of the EMV chip cards to reduce Card Present fraud, it is unanimous that they give fraudsters fewer avenues of copying and stealing personal account information as well as succeeding in counterfeiting. Consequently, you as a customer or merchant stand to gain from using EMV chip technology.

Running a successful business is a daunting task. Dealing with the inconveniences and losses caused by credit card fraud makes it much more so. Credit card fraud can occur through many ways especially by acquiring the cardholder’s personal information. However, merchants incur losses through credit card fraud when they lose the value of their goods or services and chargeback fees from the financial institution.

The two types of fraud affecting merchants adversely are face-to-face credit card fraud and the internet, mail and telephone fraud. In addition to fraudsters who use cards acquired fraudulently to make purchases, there are legitimate cardholders who use their cards to pay for goods and services then initiate chargeback afterward leaving the merchant to dispute this. This article outlines the various measures that merchants can take to protect themselves from credit card fraud.

1. Train Your Staff to Detect Suspicious Behavior
A fraudster will rarely be at ease when using an unauthorized card. Suspicious customer behavior includes nervousness, haste, random selection of products that are expensive and signatures that don’t match. These behaviors can help your staff be more cautious and investigate further to find out if the customer is the genuine cardholder.

2. Verify Card Features to Detect Counterfeit Cards
Confirming features such as the hologram, valid date, account number, signature and embossing among others can go a long way in detecting whether the card is genuine or counterfeit. If you suspect it is counterfeit, contact the card company or a relevant authority immediately and keep the card if you can do so without endangering yourself.

3. Make Sure you are PCI Compliant
PCI compliance refers to the fulfillment of the PCI DSS- Payment Card Industry Data Security Standards’ requirements. The PCI DSS sets technical and operating standards for credit card data processing, transmission and storage. This keeps the data secure. Other additional processing procedures include using equipment designed for fraud detection and proper regular maintenance of your card reader. In case of a suspicious transaction, the Code 10 prompt enables you to inform the authorities without alerting the customer, in the US.

4. Use EMV Point of Sale (POS) Systems
Using EMV POS systems that are provided by reliable credit card processors is a great way to incorporate fraud prevention measures such as tokenization and encryption. These systems accept EMV payments which are effective against card-present fraud and in detecting counterfeit credit cards.

5. Data Breach Protection Techniques
Data breach techniques are imperative when operating an e-commerce business online. They offer a secure way of processing credit card transactions and protect you from online transaction fraud. There are wide ranges of techniques which may be basic or advanced. The former deals with the installation of firewalls and anti-viruses while the latter involves an advanced method of monitoring information before their delivery.

Chip technology is upon you as a merchant

Chip technology is upon you as a merchant Obama care is the law of the land, everyone in this country is required by law to have some form of health insurance, affordable or not. I was just moved recently by a story of an ex Olympic athlete, who was in marvelous shape physically, but financially had taken a few lumps. To save some cash, he cancelled his health insurance a month ago. Over the weekend, he was teaching some athletes and suffered an accident, breaking his spine and becoming paralyzed from his neck down.

Chip technology is upon you as a merchant

Chip technology is upon you as a merchant

The new chip technology is upon you as a merchant, you can decide to use it and have the required safety guards for your business that have been put in place for you or you can continue to swipe, and take your chances. You will, if you continue to swipe, suffer a stolen card, and be forced to absorb the costs of the fraudulent charges.

Only 39% of merchants across this country have taken to the new dip technology right now. That means 61% right now are unprotected from any and all fraud that could come your way. If you are a big ticket retailer, why would you take the chance or the risk.

These days, market is full of numerous credit cards processing machines to facilitate the quick transaction of money by simple swiping of credit cards. The reason behind the credit card equipment becoming a growing trend amongst traders is the fact that it enables the customer with easy payment alternative, adding to the status and image of the company and the business

The costly charges and fees of availing a merchant account contribute to the incredulity of merchants to obtain their own credit card processing machines. Another factor that contributes to the hesitancy of the merchants is the fact that leasing it is almost like buying their own credit card processor.

The people who offer Leasing Credit Card Processing Equipment add a mark-up value of 1,500% or so to those who are availing it. Lease contracts latch small business vendors to an agreement to pay $1,400 to $ $5,000 or more in a year or so for a credit card processing equipments that is certainly huge when compared to the amount of the credit card processor itself.

Why do some business men still profit charge card handling hardware renting? This is on account of some of the individuals who offer this sort of lease makes traders sign a lease contract first before they illuminate the client the sum that is expected for installment for the lease assertion. Renting firms are aware of the awful benefit that they are getting from the lease contracts. In any case, their advertising methodologies are very much developed so vendors are polarized to get it from the renting organizations and in the long run sign an agreement before they come to understand that they are because of pay an impossible measure of expense.

Once a merchant signed the lease contract and realize how big the lease fee is, they will not be able to void the contract and is only going to face two options. Either to buy the lease or to complete the full stretch of the contract and pay the monthly fees. The awareness of the people connected to the leasing firm that they are overpricing the service defines the morals of the company that they are employed with.

Credit cards processing equipments are slanted to bringing this style through their other offered administrations furthermore charge generous cancellation expenses on their clients’ records. charge card handling gear leasing companies acquire a huge amount of profit which is unreasonable considering the quality of service that they offer to their customers. On the part of the leasing company, they do not have to offer economical rates or unique service when their customers cannot even break free from the contract because they would have to pay for cancellation fees and such.
The smarter thing to do might be to abstain from being deceived with charge card hardware renting organizations and set aside rather on purchasing your own. In any case, if at any point you have officially marked a lease contract for this hardware, then ensure that you have profited a focused shipper account with the best rates there is in the business sector.
Send In Statements provides an opportunity for business owners to become their own credit card processing Agent and earn a commission on their own account – and every account they refer. The Agent opportunity is also open to anyone in the USA who would like to earn a monthly residual income.