EMV is the global standard for accepting credit and debit cards with chip card technology. Credit and debit cards containing microchip technology were introduced to replace magentic stripe cards and add extra security around card transactions. Unlike magnetic stripe cards, every chip card transaction contains dozens of pieces of information that are shared between the cards, the credit card machine, and the acquiring bank. This process requires the terminal to perform cryptographic authentication and other complex processing functions to complete the transaction. EMV transactions are often referred to as “Chip and PIN” or “Chip an Sign” transactions.
In order to encourage the use of this technology, as of October 1, 2015, Visa and MasterCard instituted a liability shift policy to protect merchants who accept chip cards. As of that date, merchants who accept magnetic stripe transactions are liable for fraudulent transactions while merchants who accept chip cards are not liable for such transactions. As a result, it is critical for merchants to ensure that they are using the latest credit and debit card terminals equipped with EMV compliant technology.
The Payment Card Industry (PCI), which includes Visa, MasterCard, American Express, and other major industry players requires merchants and service providers to comply with strict security standards to ensure the protection of sensitive cardholder information. This PCI Data Security Standard (PCI DSS) requires merchants and service providers to take steps to ensure the protection of cardholder data, maintain vulnerability management processes and procedures, maintain an effective information security framework, and design and implement effective access control measures. These standards also require regular monitoring and testing of networks to ensure their security. These standards can be accessed in full on the PCI council’s website – https://www.pcisecuritystandards.org/.
Merchants are required attest that their systems comply with the PCI DSS. Merchants who fail to do so are subject to a monthly fine for each month that passes by without an attestation on file. Our experts are equipped to assist our merchants in completing this attestation to avoid these fines.