Around the world, EMV, or
To encourage the timely adoption of EMV, the leading payment networks have implemented an EMV Fraud Liability Shift that began in October 2015. From that date, merchants or acquirers who are unable to process transactions because they haven’t upgraded their terminals could be liable for card fraud that might have been prevented with the use of EMV-enabled terminals.
“Payments stakeholders across the industry share a collective goal to bring greater security to transactions and make sure the customer experience is smooth and seamless,” said Ellie Smith, Head of the Discover Chip Center of Excellence. “EMV will have benefits for both merchants and consumers alike as we all migrate to this safer technology.” But, as with any new technology, there is a learning curve. Here are three key things to know about the shift to chip cards and the changing checkout experience.
1. Cardholders may encounter various scenarios when they go to check-out. With a chip card, customer should insert their card face-up and chip-first into the terminal. Then, the customer should follow the terminal prompts, and only remove their card once the transaction is complete. If a customer does swipe a chip card, an EMV-enabled terminal should prompt the customer to insert the card instead. If the terminal is not enabled for chip, the customer should still be able to swipe their card. Also, there will continue to be a variety of cards in-market that support both PIN and/or signature. Automatic fuel dispensers are an exception to the October 2015 EMV Fraud Liability Shift, because they have two more years to make the transition by October 2017.
2. Employees will benefit from training and quick talking points. Once a merchant enables their EMV terminals, an important step is arming their staff with talking points about why chip cards benefit consumers with greater security, and, of course, how they are used, as employees could be the first to help walk customers through the new checkout process. Additionally, new mobile payment methods leverage both EMV and NFC, so the industry is now seeing greater interest in mobile payments among merchants and consumers. Although it’s a significant change, EMV will bring more security to payments. Ultimately, it’s smart to not skimp on training— managers need to be alert to questions and ready to step in quickly to help.
3. Resources are there to help businesses make the transition. Discover encourages merchants with questions to reach out to their acquirer and/or Discover Network representative to better understand their terminals and the changes that come with chip cards and EMV-enabled terminals. And whenever you are out shopping and checkout staff isn’t busy, ask them about their experiences and see what you can learn for your own business.