EMV SUPPORT

EMV is an open-standard set of specifications that ensure functionality between smart chip cards and payment terminals. EMV was originated as a joint effort among EuroPay, MasterCard and Visa to improve payment safety through enhanced card security and improved standards.

No, there is no mandate for merchants to implement EMV. However, liability has shifted to the party using the least secure technology.

The primary benefit of using an EMV card is the prevention of card-present counterfeit fraud. By installing a chip-activated terminal, you are protecting your business from in-store counterfeit fraud and EMV liability shift.

The chip on an EMV card protects individual transactions by adding a secret number only the card issuer knows, which verifies that a transaction is legitimate through an EMV compatible POS device. Cardholder Verification Method validates a cardholder as the legitimate owner of a card, using verification parameters set up by an issuer.

Since October 2015, certain US payment networks independently plan to implement fraud liability shifts, either to a card processing bank or a merchant who has not adopted chip technology, which impacts transactions from a counterfeit card with magnetic stripe and lost/stolen card transactions.

No, chip liability shift applies to card-present counterfeit fraud and lost/stolen cards only.

Yes, there are different chargeback reason codes for different types of cards. An issuer may use chargeback reason codes as following:

• American Express: F30 EMV Counterfeit, F31 EMV Lost/Stolen/Non-Received
• Discover: UA05 Fraud - Chip Counterfeit Transaction, UA06 Fraud - Chip and Pin Transaction
• MasterCard: 4870 Chip Liability Shift, 4871 Chip/Pin Liability Shift
• Visa: 10.1 EMV Liability Shift Counterfeit Fraud, 10.2 EMV Liability Shift Non-Counterfeit Fraud

If a chip-reading device cannot read the chip on a card, you should follow ‘Fallback’ acceptance procedures. In an event that a chip card or chip reader is not functioning, physical magnetic-stripe of a card is read, a terminal will read the service code and prompt a merchant to read the card as a chip card.

No, currently the EMV standard applies to solely for card-present transactions in face to face environment. CNP transactions are any transactions where the magnetic stripe isn’t swiped, the EMV chip isn’t inserted, or a mobile wallet isn’t tapped against a physical terminal. This means that any transaction facilitated over the phone, online, or through fax would be considered card-not-present. The EMV standard applies solely for card-present transactions in a face-to-face environment.

Tokenization with card manager replaces card data with a unique ID to help protect data at rest. CDS offers MO/TO & e-commerce merchants ‘Converge’ to keep you safe from fraudulent activities. Please call us at 1-800-371-5109 for more details.

PIN and signature are two types of cardholder verification methods(CVMs) supported by the EMV standard, and an issuer chooses one of the two types of CVMs to process a chip card. Signature cards are verified by the customer's signature on their sales receipt, while PIN cards require the customer to enter a personal identification number.

Another important difference setting them apart revolves around balance checks and authorization. PIN debit transactions require an authorization, meaning that there must be enough funds in a given account for the transaction to go through. Whereas this isn't the case with a signature debit card, where balance checks are not performed, meaning there’s a chance that you won’t receive your funds if the customer’s account is overdrawn.

No, PIN is security function for all EMV cards regardless of ‘Credit’ or ‘Debit’ that issuers adopt to enhance security around cardholder authentication.

Online PIN is encrypted by the pin pad and sent online to the issuer host for validation. Offline PIN is sent to and validated by the chip; Offline PIN is never sent to the host - only the result is passed.

No, pressing ‘Credit’ or ‘Debit’ buttons does not allow a merchant to detect what type of card it is.

No. There are two relevant facts relevant to this question: First, EMV cards that are being issued still have a magnetic stripe so that these cards can be used by merchants who have not installed EMV-enabled terminals. Second, most merchants will have hybrid terminals that accept EMV and magnetic stripe cards because it will be years before all cardholders have an EMV card.

No, there have not been any changes to published rates by any of the major networks specifically for EMV transactions. Provided neither party in a transaction is EMV non-compliant, there have been no changes introduced to dispute rights, either. None of the major networks made any changes to published rates or to dispute rights specifically for EMV transactions, assuming that both parties in a transaction were EMV compliant.

Yes, PCI DSS examines payment environment and evaluates how your business processes, transmits or even stores cardholder data. PCI DSS compliance will remain a requirement.

Any device that accepts a payment card should be updated for EMV. The fraud liability shift is on a transaction basis, not on a merchant-level basis.

① Instead of swiping, you’ll insert the card into the terminal, chip first, face up! Or you can just simply touch the card with NFC payment devices.
② The card must remain in the terminal during the entire transaction.
③ Either sign the receipt or enter your PIN to complete the transaction.
④ When the purchase is complete, remember to take your card with you.

Yes, NFC is wireless form of EMV, used in contactless payments. Contactless payments employ Near Field Communication (NFC) in transferring data from a payment vehicle’s (phone or chip card) secure element to a POS reader. They are currently supported by “Dual Interface” cards being released by issuing banks. NFC and EMV specifications use the same ISO standards in communication between devices and terminals.