You have no doubt seen or heard of EMV or chip cards in the past couple of years, but may not be certain exactly what EMV is or what it means for your business. As a business owner, there are a number of things you need to know about EMV to ensure that your ATM operation is secure and un-interrupted.
What is EMV?
EMV stands for Europay Mastercard and Visa and is the term commonly used around the world when discussing payment card chip technology. An EMV-enabled credit or debit card contains a small microchip that stores information. These cards are also known as chip cards or smart cards. The microchip on a credit or debit card securely stores encrypted information regarding the card’s access code or PIN as well as past transaction data. This technology has been in use in Europe for many years and has resulted in significant decreases in card-present fraud.
Why is Canada switching to chip cards? Chip technology greatly increases security for cardholders, merchants, banks and transaction acquirers (switches). The microchip and its information are virtually impossible to reproduce, so fraud perpetuated by card copying or cloning is almost impossible with chip cards. Chip technology also reduces the dollar value of potential fraud on lost and stolen cards. Similar to debit cards, chip cards require the cardholder to input a PIN either on all transactions, or transactions over a certain dollar amount.* So unlike cards that only have a magnetic stripe, if a chip card falls into the wrong hands, without the PIN it cannot be used at any device that is chip-enabled.
What are the benefits to EMV chip cards for merchants? EMV chip provides a more secure payment industry for everyone. Merchants accepting chip cards have an additional assurance that the person using a particular card is indeed authorized to do so, because they will have to enter a PIN. Chip also increases cardholder security and confidence, making them more likely to use their cards in your business.
- October 2010 - Liability shift
If a cloned or duplicated card is used to withdraw or charge funds fraudulently, the party that failed to be chip compliant is responsible for reimbursing the lost funds, if chip compliance could have prevented the theft. Since Access, Cash, your acquirer, and all major banks are chip-certified, if a cloned card is used at your ATM to withdraw funds, YOU may be responsible for repaying the $ amount stolen.
- December 2010
1st round of Interac sanctions (fines) charged to all merchants operating an ATM that is not EMV chip compliant.
- December 2011
2nd round of larger sanctions (fines) charged to all merchants operating an ATM that is not EMV chip compliant.
- December 31 2012
All ATMs that are not capable of processing an EMV chip transaction will be shut down.
The possibility of a cloned card being used at your ATM may seem unlikely now, but as your neighbors and competitors upgrade to chip, there will be fewer and fewer machines where fraudsters will be able to use duplicated cards. The closer we get to full ATM chip-card compliance, the higher the risk of Fraud will be to the ATMs that are not upgraded. Don’t make your ATM a target for card fraud. It could cost you $thousands.
But the new chip cards work in my ATM, why do I have to upgrade?
Cardholders with chip cards are currently able to withdraw money from your ATM because your ATM is reading information from the magnetic stripe on the back of each card. The vast majority of new credit and debit cards issued in Canada have both chip and magnetic stripes. The magnetic stripes will remain on the cards after Canada completely migrates to chip, so that cardholders will be able to use their cards in countries that have not yet implemented EMV chip payment systems. However, after December 31 2012, transactions from ATMs using the magnetic stripe will no longer be accepted in Canada. So if your ATM does not start reading the microchips by that date, your ATM operation will be shut down.
How do I know if my ATM needs to be upgraded?
If your ATM was purchased before January 2011, it likely needs some form up upgrade. If you are not certain whether your machine is EMV compliant, please contact Access Cash, and we will be able to determine exactly what is required to get your machine EMV-ready.
What is the cost of upgrading to chip?
The cost of upgrading to chip technology will vary depending on the age and model of your ATM. Some machines will have to be completely replaced, while others simply need a software and/or hardware upgrade. Regardless of what is required to upgrade your ATMS, Access Cash is here to help you. With flexible payment plans and even a no-fee ATM replacement program, we will have a program that will make your EMV upgrade as simple and cost-effective as possible.
Contact us today to discuss your options to make your ATM EMV compliant.
*Pay Pass and Pay Wave transactions do not require PIN entry but do have a strictly enforced maximum dollar value.
