EMV Chip Cards Are Here! Are You Ready?
Is Your Business Ready for EMV Chip Card Technology?
Yes, new EMV chip cards are here! EMV stands for Europay, MasterCard, and Visa. Several years ago these payment processor giants collaborated to develop a uniform standard for payment processing that would combine global interoperability and security. The new security chips inside credit cards add intelligence and security to credit card purchases by creating a unique code for every transaction.
Magnetic Strip Cards: Antiquated Technology that is Easily Counterfeited
To better explain the benefits of EMV, let’s review how the traditional magnetic strip card works. After a consumer swipes their card, the magnetic stripe terminals read the card’s information which is:
Card number + Name + Expiration Date + Service Code + CVV
Note that all this information is static. Nothing ever changes. Magnetic stripes are notoriously easy to copy and counterfeit.
EMV Cards: Dynamic Data Prevents Counterfeiting
Now contrast this with how the new EMV chip cards work. As most consumers have probably already seen, for the EMV card to work, consumers will no longer swipe their card’s magnetic stripe at the point-of-sale. Instead they will “dip” their card into a terminal or “tap” it on a terminal that has NFC (near field communications) contactless technology. And, while some of the information is still static, a key change takes place in the information transmitted to authorize a purchase. The information now transmitted by a credit card looks like this:
Card number + Name + Expiration Date + Service Code + CVV + cryptogram dynamic data
Encrypted keys inside the chip create a dynamic code that is unique to each transaction. Now if a fraudster skims a credit card or breaches a database with credit card information, they cannot simply manufacture a counterfeit card with the victim’s information embedded in the magnetic strip on the back. The chip is far too complex for a fraudster to counterfeit and they would have no way of recreating this dynamic code.
The Cost of Fraud is Too High Not to Switch to EMV Credit Card Readers
According to a 2015 LexisNexis study, “Merchants experienced increased fraud losses again in 2015, and combated challenges in a variety of areas that contributed to higher overall fraud mitigation costs and efforts. They lost an average of 1.32% of revenue to fraud and fraud related costs, a whopping 94% increase compared to 2014.”
Many small-sized businesses cannot thrive while losing this much of their revenue to criminal activity. That is especially true if fraudulent activity keeps increasing at these rates. Contact Premier Business Advantage to learn how you can upgrade your credit card reading terminals and stop losing money to fraudulent purchases today!