Credit Card Processing changes ahead for Businesses that Accept Credit Cards


Credit Card Processing changes ahead for Businesses that Accept Credit Cards

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Accept Credit Cards

The traditional magnetic stripe swipe card is shifting to a chip-based EMV card, already in use in Europe. The shift is due to security concerns from issuers and as a way to put a dent into the annual $5 billion in card fraud. (EMV stands for Europay, MasterCard, and Visa, which developed the card.)The credit-card issuing giants (MasterCard, Visa, American Express and Discover) have given the October deadline to businesses to switch over to newer point of sale pinpads, or be liable for their losses via data breaches.

The U.S. is the last major market to still use the old-fashioned swipe-and-sign card processing system, and it’s a big reason why almost half the world’s credit card fraud happens in America, despite the country being home to about a quarter of all credit card transactions.

Below are several frequently asked questions and brief responses:

1. Why are EMV cards more secure than traditional cards?
It's that small, metallic square you'll see on new cards. That's a computer chip, and it's what sets apart the new generation of credit cards.

2. How do I use an EMV card to make a purchase?
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. 

3. Is card dipping the only option?
Not necessarily. EMV cards can also support contactless card reading, also known as near field communication.
credit card processing, credit card processing fees, clover pos, merchant services, card processing fees, card processor, merchant account services
Credit Card Processing Changes
Instead of dipping or swiping, NFC-equipped cards are tapped against a terminal scanner that can pick up the card data from the embedded computer chip.

4. Will I still have to sign or enter a PIN for my card transaction?
Yes and no. You will have to do one of those verification methods, but it depends on the verification method tied to your EMV card, not if your card is debit or credit.

5. If fraud occurs after EMV cards are issued, who will be liable for the costs?
Today, if an in-store transaction is conducted using a counterfeit, stolen or otherwise compromised card, consumer losses from that transaction fall back on the payment processor or issuing bank, depending on the card's terms and conditions.

6. So by Oct. 1, 2015, the transition to EMV technology will be complete?
Not exactly.
Although the upcoming deadline is strong encouragement for all payment processing parties to become EMV-compliant as soon as possible, experts do not believe everyone will comply by that da

7. If I want to use my chip-card at a retailer that doesn't support EMV technology yet, will it work?
credit card processing, credit card processing fees, clover pos, merchant services, card processing fees, card processor, merchant account services
emv chip based credit cards
Yes. The first round of EMV cards -- many of which are already in consumers' hands -- will be equipped with both chip and magnetic-stripe functions so consumer spending is not disrupted and merchants can adjust.

8. Will I be able to use my EMV card when I travel outside the country?
Yes and no.
The U.S. is the last major market still using the magnetic-stripe card system. Many European countries moved to EMV technology years ago to combat high fraud rates. That shift has left many U.S. consumers who have magnetic-stripe cards looking for other forms of payment when they travel. 

If you are a business that  accepts credit cards and you have questions regarding the upcoming changes or if you need to purchase new card processing equipment to comply with the new regulations contact Quantum Merchant Services Today !!

Quantum Merchant Services
7300 Hudson Blvd N
Suite 255
Oakdale Mn 55128
1-800-815-3123

credit card processing, credit card processing fees, clover pos, merchant services, card processing fees, card processor, merchant account services 

Comments

  1. UnknownOctober 6, 2015 at 4:39 AM

    Great post, thanks for sharing such a great information. yes now a days fraud is a big issue. and EMV is the great solution for fraud issue. i am contacting Alliance Bankcard Services for my EMV. Yes no doubt EMV cards more secure than other cards.

    ReplyDelete

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