The US is the last to adopt this technology.
EMV technology is helping to reduce fraudulent activity.
- ¼ of the world’s transactions are in the US
- ½ of fraudulent activity occurs in the US.
- The total for the fraudulent activity for 2013 was 5.3 Billion dollars.
Magnetic strips are out of date because the technology is similar to the technology found in cassette tape. Magnetic strips are static, which makes them easy to steal.
EMV is a global standard for credit and debit card payments because they are encrypted and hard to copy.
Liability Shift
The liability shift does not affect online transactions.
Small business owners will only be liable for a fraudulent activity when the buyer uses a fraudulent chip card and the seller does not have the EMV terminal to process it. The bank will not be liable because they sent out the chip card but the small business owner will be liable because they did not upgrade to a chip card reader.
What this means to the small business owner:
Small business owners can reduce their liability by making the shift to a chip card reader (EMV terminal).
This technology is affordable and for some small business owners they maybe eligible for a free terminal through squareup.com.
Other Technology
Contactless technology like Apple Pay and Android Pay are other options to a more secure form of payment.
EMV the chip is verified with unique data.
CVM is through signature
