Follow us on
Connect
Advertisement
 

3 Things You Need to Know About the Upcoming EMV Technology Rollout

June 24, 2014 By Andreas Baumhof
Get the Flash Player to see this rotator.
 

By October 2015, U.S. credit card networks and merchants will adopt EMV payment systems and point-of-sales technology. EMV chip technology, named after its creators — Europay, MasterCard and Visa — will replace the dated magnetic stripe technology currently on major credit and debit cards in favor of tiny computer chips.

With the deadline looming for merchants to update their card readers to be compatible with EMV payment technology, it's critical for retailers and card providers to understand the implications of the change. After the deadline, retailers and banks that support magnetic stripe cards will be liable for any fraud losses that occur through the use of the cards, and will face serious damage to customer loyalty and sales if a security breach occurs.

Here are three important aspects of EMV technology that retailers must understand:

1. "Chip & signature" functionality: EMV payment technology is commonly referred to as "chip & pin." However, most merchants and card providers don't realize that this technology will likely not include PIN authentication in the U.S. On the contrary, EMV technology in the U.S. is expected to use signature authentication rather than PIN authentication, making "chip & signature" the more appropriate phrase.

2. Online security: While the use of computer chips in credit and debit cards is a huge step forward in terms of security for in-store purchases, the widespread U.S. rollout of EMV technology may actually increase online payment fraud. EMV technology in the U.S. doesn't incorporate any meaningful improvements to online payment security. As a result, fraudsters are likely to shift their focus to targeting online shoppers, where the technology is still insecure.

This has been the trend in other countries that have adopted EMV technology. For example, in Europe, while in-store fraud has decreased dramatically after the implementation of EMV chips and in-store readers, online fraud actually increased 21 percent in 2012, in part due to the introduction of EMV chip cards.

3. Steps retailers can take: Since increases in online fraud are inevitable once EMV technology is rolled out across the U.S., merchants and card providers need to take several precautions to protect their customers’ data. Implementing frictionless, context-based authentication enables businesses to verify each account login based on anonymous user identities, device usage, geo-location, customer behavior and other factors without compromising the user's identity, personal information and data.

 

Companies Mentioned:

COMMENTS

Click here to leave a comment...
Comment *
Most Recent Comments:

SPONSORED CONTENT

MORE ON E-COMMERCE >>

FROM THE BOOKSTORE

Reading The Ultimate  Insider’s Guide to Winning Foundation Grants is like peeking at someone’s  secret diary or personal email.  You feel  guilty.  This is privileged information.
Only in this case Martin Teitel WANTS to reveal everything  to you. A
 long-time foundation CEO, he’s fed up with the smoke and mirrors of  
grant seeking. Ultimate Insider's Guide to Winning Foundation Grants

Reading The Ultimate Insider’s Guide to Winning Foundation Grants is like peeking at someone’s secret diary or personal email. You feel guilty. This is privileged information. Only in this case Martin Teitel WANTS to reveal everything to you. A long-time foundation CEO, he’s fed up with the smoke and mirrors of...

ORDER NOW

One of the only books for fundraisers on monthly giving! Tips on how to make monthly giving work alongside other fundraising effortsHow to acquire monthly donors through different channels such as email, social media, direct mail, television and radioAnd much, much more! Monthly Giving: The Sleeping Giant

One of the only books for fundraisers on monthly giving! Tips on how to make monthly giving work alongside other fundraising effortsHow to acquire monthly donors through different channels such as email, social media, direct mail, television and radioAnd much, much more!...

ORDER NOW

 

SUBSCRIBE TO Today @ Target Marketing

Receive our FREE Daily
e-newsletter:
     Privacy Policy
 

RETAIL ONLINE INTEGRATION MAGAZINE:

Get Your FREE Subscription to Retail Online Integration:
Winter 2015
     Privacy Policy