Dear Valued PDCflow Customer,
Over the past few weeks, there has been been a lot of attention surrounding the move to EMV or Chip and Pin Cards in the Credit Card Industry. Those of you who swipe cards have been asking how this industry change is going to affect you and what steps need to be taken? PDCflow has also been asked what we are doing in regards to EMV cards. We hope to answer all of your questions and concerns in this newsletter.
What is EMV?
EMV is a payment technology that stands for “Europay, MasterCard, and Visa”. Issuing banks are slowly starting to deploy credit and debit cards which have a small chip on them that is very difficult to counterfeit. The banks want to implement this technology as soon as possible to move away from magstripe cards which is easier to counterfeit.
After Oct. 1, Visa and the other providers have said that liability for a fraudulent, card present credit card transactions (i.e. a purchase with a fake card at a physical store) lies with whoever didn't take steps to switch to chip cards. That means the bank has to cover the fraud if it didn't issue a card with a chip, and the retailer does if it didn't change over to chip readers.
So what does the October 1st deadline mean?
The October 1st deadline is more the beginning then the end of the process. Since it's not a mandate but a shift, the changeover won't happen everywhere at once.
Though the credit card industry’s self-imposed EMV deadline was October 1st, 2015, more than 7 in 10 American card holders still do NOT have chip-enabled credit cards in their wallets, and retailers are nowhere near ready, according to a new survey published by USATODAY.
According to a survey published earlier this month by Pulse, a Discover company, 90 percent of U.S. financial institutions either have begun issuing EMV cards or say they will do so by the end of the year. "Based on these plans, 25 percent of U.S. debit cards — approximately 71 million cards — will be migrated to chip by the end of 2015. The percentage is expected to rise to 73 percent by the end of 2016 and 96 percent by the end of 2017," the Pulse survey says.
What does this mean for you as a PDCflow client?
First, don't panic, if you currently are swiping cards, they will continue to work but just with the liability shift as described above. PDCflow is researching integration to some select EMV ready terminals, but is still currently analyzing the cost and determining the business case for the work. We will be in contact and update you on our findings.
Thank you for your patience and please let us know if you have any questions at email@example.com. You may also subscribe to our Using Credit Card Scanners forum on our Support Website for regular updates. Just hit the subscribe button in the upper right hand corner and you will be notified on any updates automatically.