EMV Cards gaining Acceptance

| October 6, 2015

16107292990852cd183fbo-750xx2640-1485-0-122

JACKSONVILLE — Among those retailers already accepting the new chip and pin, or “EMV”, cards at their payment terminals are Target and Home Depot.

Not surprising, considering both consumer giants have been the target of huge data breaches of consumer credit card information over the last several years. Those security breaches cost third-party financial institutions millions of dollars to reissue new credit and debit cards — costs that were then passed along to the affected merchants.

In addition to the magnetic strip cardholders are familiar with, EMV (which stands for EuroPay, MasterCard and Visa) cards have a chip embedded within the card itself which encrypts consumer information, thereby reducing the chances of fraud. New machines or “readers” process chip and pin cards differently than the quick swipe method most people are used to, requiring consumers to actually insert the card into a slot and wait until the transaction has been fully processed before removing it.

As of Oct. 1, the liability for fraud has been shifted — if a business doesn’t provide the new machines and there is a data breach in the course of a purchase, the merchant will be held liable.

Larger institutions like Bank of America and Chase have already begun rolling out new EMV-ready credit and/or debit cards over the last year or so, according to the Federal Reserve Bank of Chicago. The cost of this EMV transition is causing smaller banks to convert their cards more slowly.

Read more at Jacksonville Business Journal

Savannah Port Nation's Fastest Growing, Fourth Largest
Your Changing Definition of Risk in Retirement
×

Comments are closed.