Of course, this all pertains to point of sale transactions–businesses that rely on face-to-face payment processing (i.e.: retail). That is to say, a business may be found liable for a fraudulent transaction if they have not elected to transition from a magnetic swipe to the EMV technology. Banks and card issuers argued that this more advanced technology should reduce fraud and were successful in shifting the liability of fraudulent processing to the businesses. Magnetic swipe transactions rely on signatures at a point of sale, where EMV transactions rely on cryptographic algorithms. transitioned to EMV due to the fact that it is less susceptible to fraud. Why do business’s choose EMV Chip Card readers? This process makes perpetrating fraud much more difficult. The card and the reader agree upon a unique ‘password’ for this transaction. The reader locks the card in place and accesses our information. With EMV, we insert a card into a reader. EMV has the same goal, but with a different approach. This reader processed the information on the strip and accessed the proper data and accounts. With the magnetic stripe on cards, we were accustomed to swiping our cards through a card reader.
The ultimate guide to safely accepting credit cards for small businesses and startupsĬlick here to access the FREE How does EMV Work?
75% of consumers prefer to pay with credit or debit cards