EMV 101 for Merchants

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AgendaEMV Basics

• What is EMV• Why EMV• Liability Shift• How to Comply• How to Estimate Liability• Gravity Payments: Who We Are

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What is EMV?

Europay Mastercard Visa or Chip/Pin Cards

Dip not swipe

“Smarter terminals” lead to less exposure – not sending the credit card number through the network

Reduce the risk of accepting counterfeit cards – data is harder to copy than that of the magnetic stripe

No change for e-commerce

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Why EMV?

Counterfeit credit card losses >

$11billion/year

63% paid by issuing banks - 37% by

merchants*

Banks have the incentive to require tighter

security at the point-of-sale

United States has become “low-hanging fruit”

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Liability Shift

October 2015 - Applies to card-present counterfeit fraud on EMV cards ONLY

Before the liability shift – counterfeit fraud = bank pays

After the liability shift – counterfeit fraud

1. Was the card EMV capable?

2. Was the merchant EMV enabled?

• Yes/Yes – bank pays

• No/Yes – bank pays

• Yes/No – merchant pays

• No/No – bank pays

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HOW TO COMPLY Terminals

POS systems

Some issuers are sending out cards that are pin capable

If both, the card and the terminal will talk to discuss whether the customer should enter a pin or sign

No requirement for customer to dip on signature transactions

How to Comply

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How to Estimate Liability

How well do I know my customers?

What are my historical chargeback rates?

How big are my transactions?

63:37 ratio

Past performance is no guarantee of future

success

Don’t be the sick wildebeest

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WHO WE ARE The Communities’ Most Trusted

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To learn more, visitgravitypayments.com