Preventing the growth of card-present fraudulent activity is one of the main reasons the industry moved towards EMV technology. Chip cards make it difficult for fraud organizations to target cardholders and businesses alike. As a result, more and more chip cards are being introduced by U.S. financial institutions in order to support and switch over to this technology.
Just like magnetic-stripe cards, EMV cards are processed for payment in two steps: card reading and transaction verification. However, with EMV cards you no longer have to master a quick, fluid card swipe in the right direction. Chip cards are read in a different way. Instead of going to a register and swiping your card, you are going to do what is called ‘card dipping’ instead, which means inserting your card into a terminal slot and waiting for it to process, when an EMV card is dipped, data flows between the card chip and the issuing financial institution to verify the card’s legitimacy and create the unique transaction data. This process isn’t as quick as a magnetic-stripe swipe because it will take a tiny bit longer for that transmission of data to happen, for example, If a person just sticks the card in and pulls it out, the transaction will likely be denied. A little bit of patience will be involved. While chip card transactions may take a bit longer than magnetic stripe transactions, total card processing time will vary between merchants and eventually speed up as this new payment environment is improved.
Given the migration challenges for implementing EMV in the petroleum environment, Visa’s and Mastercard’s modification of the liability shift dates will be beneficial to the retail petroleum industry and the U.S. chip migration, so for now, gas stations do not fall under the existing EMV fraud liability shift rules. ATMs still have two fraud liability shift dates: Mastercard’s that recently passed in October 2016 and Visa’s in October 2017. Until both dates pass, ATMs will follow existing fraud liability rulings.
You may begin to feel the pressure as regards the EMV card migration which is already reaching its critical mass with issuing banks beginning to issue chip cards to new and existing customers. Businesses that have not already migrated to EMV may consequently have to answer to their customers as to why they have to continue to swipe their new chip cards – especially when the market presents chip technology as the safer way to pay. Don’t wait until the last minute to migrate your business.

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