Dinerware explains EMV

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What is EMV? U.S. banks are switching up the insides of credit cards. They’re adding something called EMV technology, which stands for “Europay, MasterCard, and Visa.” Translation: Credit cards will be equipped with a super-small chip that’s extremely hard to counterfeit. If you’ve gotten a card recently, chances are it has an EMV chip. EMV is not the same as PCI DSS, EMV protects against counterfeit card fraud, PCI compliance focuses on security of sensitive data.

To be EMV compliant, you will need new hardware to read these chips. The magnetic swipe will not be EMV compliant. Instead of the swipe, the new process will be more of a “chip-and-dip.” Chip cards are inserted, or “dipped,” into the payment device and left in place for the entire transaction as the reader and card talk back and forth. We will get into the hardware more later but first let’s talk about how this affects you as a business owner.

What does this mean to me and my business?

For the merchant, this means that after October 2015, the liability will shift. This might mean potential charge backs to you, the merchant, depending on your level of secure technology. Currently, if a counterfeit card is used in your business, the issuer is liable. After October 2015, the party using the least secure technology will be held liable. For chip cards, if the merchant does not have a chip terminal or chip card reader, the merchant will be held liable. As of today, if a lost or stolen card is used in your business, the issuer is liable. After October 2015, for chip & pin cards the merchant will be held liable if the terminal or customer verification method they are using is less secure.

Is EMV compliance right for you?

EMV is not mandated or required for merchants but there will be additional costs to become EMV compliant. You the merchant have the choice to implement EMV in your business. EMV is not protection against all chargebacks, the liability shift only covers counterfeit and lost or stolen cards. Chargebacks due to service or questionable charges will be handled as done today.

So how do you know if you should implement EMV standards in your business? Here are a few considerations:

Location and Demographic:
Are you located in an area were counterfeit or lost and stolen cards are often used in your business? Do you accept a lot of international cards?

Chargeback Ratios:
How many chargebacks occurred in your business within the last year? What were the reasons for those chargebacks?

Cost vs Risk:
What is the COST to implement EMV standards in your business and does that cost make sense for your business’s RISK?

What are my options if I decide to implement EMV?

Dinerware will be offering a full range of device options, with the first being the PAX S300. The PAX device is considered an “out of scope” solution which means credit card information never touches your Dinerware POS terminal, it remains “out of scope”. More details will follow as we add support for additional devices.

Need More Information?

If you have any questions concerning EMV and Dinerware please feel free to reach out to the sales department. You can email us at Sales@dinerware.com or call us at 866-346-3792 and press 1.

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