Newtek, The Small Business Authority 855-2thesba thesba.com 855-2thesba

Transcription

1 thesba.com 855-2thesba

2 EMV Chip Technology, Secure Electronic Payments The world of payments is evolving. We are starting to see an evolution from typical static magnetic strip cards to more intelligent devices such as EMV chip cards and NFC mobile phones. Card Associations are paving the way to increase the security of card present payments by defining the migration to EMV contact and contactless chip technology in the US. This new chip technology has the added benefit of reducing the possibility of stolen payment card data. If the card is lost, it would be unusable without the presence of the card s unique elements. Dynamic elements to transactions will make account data hard to steal or compromise, thus making merchant systems safer and more secure. Europay, Mastercard & Visa (EMV ) is the global standard for the operation of chip cards, point-of-sale terminals, ATMS, etc. Starting in April of this year, MasterCard, Visa, American Express and Discover will require acquirers and service providers to have the capability to process any EMV transaction. This includes contact and contactless payments, such as use of credit card or mobile device. All of this is in preparation of a liability shift that is set to occur in October This shift in liability will hold that an issuer or merchant who does not process with EMV compliant equipment will assume the liability for counterfeit card transactions. If a merchant has not adopted, at least, the contact chip terminals and a contact chip card is presented the liability for counterfeit fraud will shift to the merchant s acquirer. This shifting liability strongly encourages chip adoption. As an added bonus, as of October 2012 Visa s Technology Innovation Program eliminated the requirement for eligible merchants to annually validate their compliance with PCI Data Security Standard if at least 75% of their Visa transactions originate from chipenabled terminals (must support contact and contactless chip acceptance).

3 Progress Report: The Ever-Important and Elusive EMV Chip Technology There certainly has been no shortage of chatter about credit cards, hackers, and cyber security as of late. But do we really understand what it is all about? Sure, we know that anywhere from 40 to 110 million Target customers debit and credit card numbers, addresses, and other types of personal information were compromised in what could very well be the largest instance of cyber crime in history. Lets break it down: Today s typical credit cards come standard with the familiar magnetic strip on the back. So, when we swipe our credit cards to make a purchase, that card reader gets a whole bunch of information from that strip, including: Purchaser name Credit card provider Card number Expiration date CSC or CVV The key here is that all of this information becomes available immediately, upon swipe. That begs the question, what is to stop hackers from retrieving everyone s card readers (or terminals)? (Hint: Nothing. That is precisely what happened at Target.) That being said, not every Company is taking this laying down. In Europe and Canada, Europay, MasterCard, and Visa have begun using a card that better protects this information. In other words, they are making use of a credit card, that employs a little EMV chip (instead of the familiar magnetic strip) that stores card holders information. And how is this different from the traditional credit card swipe? EMV cards may be used as a credit card, debit card, or an e-wallet The data on this chip is encrypted Reader enforces authentication Protected by PIN Is there proof that EMV is better? According to a Federal Reserve report, in the six years since banks and merchants in England have implemented EMV, credit card fraud has dropped 34 percent. France saw a 35 percent reduction from in-person card use. So why isn t the US using EMV? It costs about 10 times more for banks to produce EMV than it does for them to produce a magnetic strip All merchant processors would have to switch to EMV terminals Companies make $41.2 billion from credit card swipe fees and lose just $5.33 billion to fraud according to The Nilson Report The transition to EMV would be ambitious. There has been talk of beginning the conversion process in the U.S. as early as October 2015 though 2018 is looking a bit more realistic. But until then we ll just have to sit tight, and follow best practices to remain as cyber-secure as possible until things progress. Unfortunately, the merchant behavior in Europe and Canada now expect a chip card to be presented and standard magnetic strip cards are being refused at the point of sale. This causes the Card Associations to desire that the acceptance experience of their cardholders be universal, wherever the cardholders want to use the card. This accepted everywhere the same way desire is pushing the conversion to chip in the US.

4 Introducing Newtek s Retail Swipe Gateway Solution Retail Swipe where credit card data is encrypted right at the time of the swipe, NOT afterwards! Benefits of the Magtek Swiper No need to download drivers or software. Lower interchange rates than key entry. Reduced risk of chargeback. Faster & more convenient than key entry. Works on standalone or portable PC s such as a laptop. More secure. USB Powered for simple setup. Only works with The Secure Gateway. Seamless installation, just plug it in How to get started? 1. Connect Magtek Swiper to your PC, look for the green light to turn on. 2. Log into your Virtual Terminal, input the sale amount, then press the swipe button. 3. Swipe the card, and then click Process in the VT to complete the transaction DONE!

5 Benefits of Dejavoo V series Terminals All Dejavoo V series terminals are EMV ready. All Dejavoo terminals are certified PCI compliant. They work with Retail, Restaurant, MOTO, and Contactless environments. The V8 and V8+ terminals can use IP as well as dial-up to conduct transactions. They are color coded for ease of identification, troubleshooting, and support. They are reliable and reasonably priced. Dejavoo comes from a long lineage of successful terminal manufacturing; many former Dejavoo employees including the CEO come from a company known as Lipman Nurit, a leading name in the industry that was acquired by Verifone some years ago. The terminals are menu driven and easy to use.»» The V9 and V9+ wireless terminals provide mobile merchants the ability to take payments almost anywhere.

6 THE LARGEST INTERNET HACKS of 2013 Cyber-security threats are on the rise. Newtek is here to help you understand trends in security and identify vulnerabilities within your site. Do not suffer from the mistakes these businesses faced below. Adobe Reported 2.9 million credit and debit card numbers taken and 38 million passwords Neiman Marcus 1.1 Million credit cards and debit cards hacked Living Social 50 Million usernames, s and passwords Target 40 million payment card numbers and as many as 70 million customers personal information Twitter 250,000 usernames, s and passswords How can Newtek help your company & customer data remain safe? CALL US AT OR VISIT US AT Sources: