Are you using your new EMV-enabled credit cards? They look just like your old credit cards, don’t they? Except, of course, for one small significant difference – a computer chip.
You’ll notice in some countries – Canada, Europe, and Latin American – terminals asking customers to “dip” cards that won’t swipe. Purchasing items with credit cards with a computer chip is the global trend now because they’re safer than… credit cards that swipe.
Here Are Wonderful Things You Need Know About The New Card That Won’t Swipe.
What is an EMV credit card?
The EMV chip credit card is a safer card. Just like your old credit cards with the magnetic strip, the chip on the new “EMV credit card” (Europay, Mastercard, and Visa – three companies to establish the new technology) stores your card info and transmits it to payment processors in such a way that it becomes almost impossible for criminals to steal and use for purchases.
Here’s EMV credit card work?
First, you “dip” your EMV card into a slot just below the numeric pad when purchasing an EMV-powered terminal. Then, you follow instructions on the screen and leave your card in the slot until the whole transaction is complete. So, as you can see, it’s not as same as the usual swipe-as-you-go motion that you did with your old cards with magnetic strips.
Checking out may take a little longer as both consumers and cashiers get used to the new payment process.
If you’re at a terminal that is not EMV-enabled, whether or not you’re carrying an EMV-enabled credit card, you’ll have to swipe your card in a quick motion to complete the transaction.
For online purchases, you’re still required to enter all your card information – credit card number, security code, expiration code, and billing address.
Do you require a pin?
The chip-and-pin version of the EMV card has been used only in many countries now. You merely “dip” your EMV card into the slot and enter your PIN number for your card purchases, which is similar to what you did with your debit cards.
Many credit card companies in the U.S. are also moving towards using the chip-and-signature payment method, where you’ll be asked to sign for your card purchases, just like you used to do in the past.
On the other hand, the contactless card has a contactless symbol in front of the card. Just tap your contactless card on the credit card reader to complete the transaction.
What makes EMV cards safer than swipe cards?
As I mentioned earlier, your EMV cards have a chip built into it that generates a unique code for each transaction, which cannot be used again for another transaction. So, if some silly hacker gets hold of this code and tries to use it for credit card purchases, the transaction will be declined just like a disinterested girl will decline your 2nd-date offer.
But, credit card theft is still possible with your EMV-enabled cards.
Here’s how: While the new EMV chip technology has helped minimized credit card frauds, in the long run, there’s still a possibility of fraud in the short-term. Because this new technology was introduced only recently – meaning not all retailers have the EMV-enabled card readers at their terminals. So, as you can imagine, you’ll have to swipe your credit card at some point, just like you used to do in the old days, and desperate fraudsters might steal and use your card info to buy gifts for their mom.
Besides, you might also lose your card, or a thief can easily steal your card and run away.
Online purchases have same risk of fraud. Online hackers imposing as businessmen may trick you into handing them your credit card information.
2016 was “the transition year”
The year 2016 was a transition period for adopting the new EMV cards. And this transitional phase will affect both the merchants and the consumers. For customers, that meant waiting longer in lines in 2017. But, by this year (2018), “dipping” is something that almost all cardholders are used to when they go to checkout. But keep your eyes on new technological options that’ll minimize these long waiting lines.
For retailers, just 29% of merchants were able to accept the EMV payments because of the delay caused by waiting for official certification. It was confusing and resulted in more chargeback because the merchant wasn’t EMV compliant.
Here’s the good news: As merchants were replacing their terminals with fresh EMV enabled terminals, they’re also adopting contactless capability, laying the foundation for future payments like mobile proximity payments. And, as 98% of merchants have switched to EMV terminals by the end of 2017, inconveniences reported by many consumers – waiting longer in lines – have also been resolved.
The “wait lines” at the EMV terminal is better in 2018.
Did you know that in 2017 – the transitional period for EMV card – consumers have to spend at least 5 to 6 hours waiting for EMV. Not a very good news for businesses and customers.
There are several reasons why the speed of transaction slower in the U.S. than elsewhere, but the most critical question to ask: Is that really a problem?
Well, the simple answer is: it depends!
It depends on the business.
For instance, if you’re in a high-volume, fast-paced market, a slow speed can be detrimental. But, if you’re in a market where you have a dialog with your consumer, then it’s less of a hassle.
But, the card industry is also planning to release a second EMV implementation in the market that will be more optimized for speed as experience grows, and companies push for best practices.
Fuel-pump EMV liability has been postponed until October 1, 2020.
The gas stations are experiencing difficulties with retrofitting fuel pumps accepting EMV chip cards; Due to this reason, Visa and MasterCard have postponed the fuel-pump liability until October 1, 2020.
During this period, MasterCard and Visa will keep a close eye on fraud trends and work hand-in-hand with merchants, issuers, and acquirers to help diminish counterfeit frauds.
It’s time to adapt.
Do NOT procrastinate. EMV payment is here to say, for a long time – especially if you look how secure it is. So, if you’re a merchant, don’t kid yourself. Instead, start adopting EMV-enabled terminals now, and avoid being the victim of long-term consequences, like being responsible for counterfeit fraud.