Are You Using an EMV-Certified Terminal to Protect Your Business?

• EMV-certified terminals minimize fraud through secure payments, and shields businesses from liability costs.
• EMV-certified payments help reduce fraud, increase trust, and enable a positive experience.
• EMV-certified technology helps to avoid fraud-related costs and helps businesses reputations stay intact.

It is now mandatory for all businesses that accept credit and debit card payments to comply with EMV certification standards. This shift towards more secure payments means businesses that are not EMV compliant are now responsible for fraudulent activities. This is why it’s vital to upgrade to an EMV-certified terminal.

What is EMV Certification?

EMV, which stands for Europay, Mastercard, and Visa, represents the new standard in credit and debit cards offering secure payments. These cards contain an embedded microchip that encrypts data, making it harder for fraudsters to steal sensitive information. With EMV, consumers have three options to pay for their purchases securely.

EMV Contact: The EMV chip is inserted into the card reader with this payment method.

EMV Contactless: When using the EMV contactless option, simply tapping the chip card on the payment device is sufficient.

Near-field Communication (NFC): This option enables contactless payments by tapping an NFC-enabled device, such as a mobile phone, to the payment device without carrying a physical card.

4 Reasons to Upgrade to an EMV-certified Terminal

1. Minimize Fraud

EMV cards are equipped with powerful chips that generate unique data for each transaction. This makes it difficult for fraudsters to steal card data and create counterfeit credit cards. To process chip-enabled credit cards, you need an EMV-certified POS system. Together, chip-enabled credit cards and EMV processing terminals create a more secure system that reduces counterfeiting, helps with fraud prevention, and minimizes associated costs.

2. Creating a Safer, Happier Customer Journey

Offering EMV-certified terminals at your business can give your customers greater security. As magstripes are being phased out and credit card issuers are distributing more chip-enabled credit cards, consumers are becoming more aware of the benefits of using this safer payment option. As a merchant, it is important to prioritize your customers’ safety and ensure they feel secure when shopping at your stores. Fortunately, most customers report having a positive experience with EMV technology. In fact, a survey by Visa found that over 70% of consumers had a favourable experience using chip-enabled credit cards.

3. Shield Your Business from Liability Costs

It’s important for businesses to use EMV-certified systems to avoid legal responsibility for fraudulent transactions. If a customer experiences credit card fraud while transacting with a business that doesn’t use a terminal with EMV certification, the business may be required to cover the financial damage and expenses. According to Visa, businesses that have shifted to chip technology have experienced a 75% drop in payment fraud. Therefore, upgrading to EMV-certified technology can help with fraud prevention and protect a business’s financial resources.

4. Uphold Your Business Reputation

Fraudulent activities can have both financial and reputational consequences for your business. While it’s obvious that fraud can lead to financial losses for your customers, it’s equally important to consider the impact on your business’s reputation. If your customers’ personal information is compromised, they may perceive your business as not prioritizing their privacy and security. This can result in a loss of trust and negatively impact customer loyalty.

How Can Incorrectly Processed EMV Transactions Harm Your Business?

For businesses that accept credit card payments, using EMV-certified payment terminals is crucial to avoid potential chargebacks and fraud initiated by banks. It is important for merchants to be aware of MasterCard Reason Code 4870, which is a specific type of chargeback that occurs when a cardholder disputes a transaction and claims that the merchant didn’t use EMV-compliant equipment to process the payment. This chargeback is initiated under the EMV Liability Shift policy, which holds merchants responsible for fraudulent transactions that result from their failure to use EMV-compliant equipment.

The Chip Liability Shift refers to a change in the allocation of responsibility for fraudulent transactions in the credit card industry. Major credit card companies, such as Mastercard, introduced this change to encourage merchants to adopt advanced and more secure technology for fraud prevention.

Before this shift, if a fraudulent transaction occurred using a credit card with a magnetic stripe, the issuing bank would usually be held accountable for covering the costs related to the fraud. Since the introduction of EMV chip technology, the responsibility for fraudulent transactions has shifted from the issuing bank to the merchant, but only if the merchant’s terminal is not EMV-compliant.

When purchasing goods or services with a credit card, the cost includes the price of the items, any chargeback fees, as well as any fines or penalties for non-compliance. The EMV standard has significantly reduced the occurrence of counterfeit card fraud.

Merchants who have upgraded their terminals to accept EMV chip cards have experienced decreased fraudulent transactions and chargebacks. They are also protected from liability in the event of fraudulent transactions. Adopting increased verification measures will help establish a global payment authentication and ensure the security and reliability of transactions for your business. Upgrading your point-of-sale terminal to accept EMV-certified transactions provides secure payments and creates a seamless customer journey.

How To Get an EMV Upgrade

If you want to upgrade your facility to meet the latest EMV payment standards, MONEXgroup has got you covered with certified hardware and software solutions.  Our POS devices are versatile, catering to a wide range of businesses across various industries. We offer unattended self-serve, in-store attended devices and mobile payment terminals to suit your needs.

We’re here to help you find the best solution that meets and exceeds your organizational requirements. Contact one of our experts to learn more at 1.866.286.7787 or contact us today.