Date post: | 16-Aug-2015 |
Category: |
Business |
Upload: | gravity-payments |
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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