Why Use an EMV Terminal?

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By employing an EMV terminal, your business and your business associates can reduce losses to counterfeit fraud and, thus, improve your business and business credit. Lower fraud losses aid in controlling the cost of doing business for all the stakeholders, including merchants. Merchants benefit from fewer charge-backs by using terminals as a payment processor that process chip transactions. The merchant is not financially liable for the cost of specific fraud transactions when cashiers follow terminal displayed directions on the payment system. Cashiers must also follow the business’s routine security practices.

The EMV liability shift means that if someone attempts to pay with a non-EMV card, and the card is fraudulent and it goes through, the fraud liability shifts to the merchant and the merchant account. This is definitely something to be aware of for those that are interested in exploring EMV processing. The goal is to reduce fraud, credit card fraud in particular, and reduce counterfeit cards, through EMV chips and EMV technology. The goal of the EMV liability shift is to reduce fraudulent transactions through more EMV transactions.

Some EMV cards even require cardholder verification, like chip and signature cards, in addition to entering the user’s pin on the pin pad, to provide further safety to the cardholder and as a form of data authentication. These verifications can help ease the process of risk management.

Mastercard and Visa even went on to create 3D secure which aims to protect online payment made on their virtual terminal on online transactions. It is a protocol designed to protect online and mobile payments made with Mastercard and Visa cards and tries to reduce the risk of fraud and stolen cards. 

Choosing card processing terminals that will accept EMV chip cards will reduce the potential for errors and losses because they stop reconciling paper. Transaction records for chip card payments are completely electronic. Chip transactions speed customers through check out since it does not rely on sales associates to make difficult judgments about signature accuracy. Sales associates simply follow terminal prompts on the credit card machine.

American Express, Discover, MasterCard and Visa have adopted chip card for the last remaining market, the United States, by October 1, 2015. Because of the mag strip technology investment by US merchants, the card associations specify interoperability into some future time. Interoperability is the acceptance of credit and debit cards with a chip and magnetic stripe.

The card issuers – banks, credit unions and others, are issuing chip cards now in cards like Visas and Mastercards. Foreign travelers on vacation or business in the United States bring chip cards from Europe and Asia and other regions. Many of these cards have NO magnetic stripe. There are multiple types of EMV Terminals but the three types we support at Shift processing include the Dejavoo QD4, Valor VP100 and the Pax A80.