Planning For EMV Technology. Your Guide to Making the Transition

Transcription

1 Planning For EMV Technology Your Guide to Making the Transition

2 Table of Contents What is EMV? How does it work? Why is it happening? Who will be affected? Is POS terminal replacement necessary? Is this a trend? Are more changes on the horizon? What do I need to do to prepare? Why should I trust Wheatland Card Solutions? How can Wheatland Card Solutions help? About Wheatland Card Solutions

3 A change is coming to the way card payments are processed at the point of sale. By now you may have heard of EMV technology and the impending transition, but the topic can seem daunting. Everyone has questions. Although this change will be industry-wide, the implementation will not be uniform. When a dramatic shift such as this occurs in the financial sector, questions arise and the impact is far-reaching. We can help. This transition will affect security, liability, and consumer experience. Much will be changing, for customers and merchants alike. Without a plan, you could be left with uncertainty, chaos, or on the losing end of shifted financial burdens. This guide will serve you through this transition. In it, we will address what s upcoming, how you can prepare, and best practices for making sure your business gets through the transition with ease. When a dramatic shift such as this occurs in the financial sector, questions arise and the impact is far-reaching. We can help. 1

4 Ultimately, the transition is about improving life for your customers. You can add security to their lives with minimal impact to the way you do business. To do so, it s important you understand the benefits of the technology and the possible challenges of the switch. 2

5 3 10 Common Questions About EMV

6 1 What is EMV? EMV is a new standard for card chip technology. Developed by Europay, Mastercard, and Visa, it provides a standard that allows interoperability of chip-based payment cards. When the chip is read properly, the technology makes the cards virtually impossible to counterfeit by storing sensitive cardholder data on an embedded chip, which generates a unique cryptogram for each transaction processed. It will improve security for Card Present POS transactions. It s not exactly new technology. In the U.K., it was used as early as The technology has gained momentum stateside over the past few years. 4

7 2 How does it work? With each use of an EMV card at a point of sale, a unique cryptogram is generated for each payment made. The cryptogram changes and expires after each transaction, so the card data cannot be used to create counterfeit cards. The POS process will be affected minimally, but will require POS terminals to be updated to new models designed to read the chip cards. Consumers presenting cards at your point of sale will need to be educated on the new process. Cards will be inserted into the chip reader slot on the terminal as opposed to the traditional swipe method. The card will remain in the terminal for the duration of the transaction processing. 3 Why is it happening? Credit and debit card data security is a hot-button issue, with several massive-scale security breaches making headlines and costing billions of dollars in the past few years. Card fraud is a major concern in today s commerce and e-commerce climate. The evolution of consumer expectations has led shoppers to demand higher security standards for their purchases. 5

8 4 Who will be affected? All parties of the payment process will see some degree of change. Cardholders, card issuing companies, merchant service providers and financial institutions will be impacted by this transition. This is a large-scale adjustment with major implications. But if you have a plan in place, it should cause little concern for yourself or for your customers. The change should be positive for all involved. Consumers will enjoy enhanced security and merchants like yourself can provide a better service to your customers. 5 Is POS terminal replacement absolutely necessary? OCT We strongly recommend that you replace your terminals by October Beginning on that date, you and your acquirer will be held responsible for any face-to-face card fraud transactions that occur on your terminals when the customer presents an EMV Chip card and you are unable to process it as EMV. While the terminal upgrade could seem expensive, the protection it will provide you in this liability switch can ultimately be a savings. 6

9 6 Is this a trend? No. This will be a permanent change. This is the future of the payment industry. EMV has been adopted throughout Europe, Asia Pacific, Canada, Latin America, Africa and the Middle East. Its implementation in the U.K. has led to a significant drop in card fraud losses. The technology has had enough of a positive impact to inspire this shift stateside. The transition will be reminiscent of the PCI Standard upgrade that occurred a few years ago. Just like the PCI compliance, all merchants will be affected. 7 Are more changes on the horizon? We are also on the brink of a new banking era, where technologies such as Apple Pay and near field communication (NFC) will make consumers less dependent on physical cards for their payment needs. Along with the card updates, these new POS terminals will be able to handle other advancing technologies. 7

10 8 What do I need to do to prepare? As a merchant, you will have to make some significant decisions regarding the POS terminals, such as: When and how will you replace and/or upgrade your POS terminals? Understand how the new process will work at your point of sale Be prepared to educate your staff and customers on the new process and its benefits If you use a POS system with integrated card processing, discuss the hardware and software changes with your POS system vendor 8

11 9 Why should I trust Wheatland Card Solutions more than an independent merchant provider? Independent merchant providers are approaching merchants with scare tactics, proposing that your systems are at risk of becoming immediately outdated and out of compliance. The truth is, this is not a sunset on magstripe technology, but a gradual change in the industry. Initially, cards will be issued with both magnetic stripes and the new chip technology. Current terminals will continue to be able to process these cards via the magstripe. It is important to understand that beyond the October 2015 liability shift, you as a merchant will become responsible for fraud that is a result of counterfeit cards presented at your point of sale if you cannot process them using the new EMV technology. The pricing structure that independent merchant providers propose are often very complex. What may appear to be a good deal on hardware will come with long-term contracts, additional fees and a lack of local, easily accessible service. 9

12 10 How can Wheatland Card Solutions help me prepare? The transition doesn t have to be complicated. You can rely on Wheatland Card Solutions to help train and answer any questions. We will help you make the necessary POS terminal decisions and guide you through the rest of the process. We have already begun helping merchants implement EMVcapable hardware, so we have experience with the systems and can you help make that transition smoothly. We can also help you engage in conversations with your customers about what this change will mean for their security, and how it will affect POS transactions. After all, this is about your business and your customers peace of mind. Nothing could be more important to us. 10

13 Wheatland Card Solutions has continually sought, recognized and celebrated the character qualities that lead to positive, growing relationships. We strive to uphold these qualities to ensure that we re a company of character in all that we do. 11

14 Ready to learn more? Our team of EMV experts can help prepare your business for the upcoming change. Contact a merchant representative at or merchantservices@wheatlandcardsolutions.com Wheatland Card Solutions