EMV Compliance

EMV Compliance


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EMV stands for Europay, MasterCard and Visa, a global standard for inter-operation of integrated circuit cards (IC cards or “chip cards”) and IC card capable point of sale (POS) terminals and automated teller machines (ATMs), for authenticating credit and debit transactions.In a joint effort between Europay, MasterCard and Visa to ensure security and global interoperability so Visa and MasterCard cards can continue to be accepted everywhere. Europay International SA was absorbed into MasterCard in 2002. JCB (formerly Japan Credit Bureau) joined the organization in December 2004 and American Express joined in February 2009. IC card systems based on EMV are being phased in across the world, under names such as “IC Credit” and “Chip and PIN”.

The most widely known chip card implementation of EMV standard are:
VSDC – Visa
M/Chip – MasterCard
AEIPS – American Express
J Smart – JCB
D-PAS – Discover/Diners Club International

Changes are being implemented in the way credit and debit cards are processed. Merchants have been used to swiping a magnetic stripe credit card through their terminal to get an approval on a transaction. After October 1st, 2015 merchants in the United States will need to process all transaction by inserting a chip enabled credit card into the terminal which will prompt the customer to enter a PIN code in order to protect themselves from chargebacks.

The goal of the new standard is to improve protection against fraudulent activity involving cardholder information. Studies have shown that countries which have adopted the new standards have dramatically reduced rates of credit and debit card fraud. the lengthy implementation timeline gives manufacturers, processors and support providers the time needed to migrate their large base of merchants toward meeting the EMV standards.

EMV Implementation

In many countries around the world, credit card and/or debit card payment networks have implemented liability shifts. Normally, the card issuer is liable for fraudulent transactions. However, after a liability shift is implemented, if the ATM or merchant’s point of sale terminal does not support EMV, then the ATM owner or merchant will be liable for the fraudulent transaction.

United States

Visa, MasterCard and Discover in March 2012 – and American Express in June 2012 – have recently announced their EMV migration plans for the United States.

Visa is implementing a liability shift for point of sale terminals on October 1, 2015. For pay at the pump, at gas stations, the liability shift is October 1, 2017. For ATMs, the liability shift is October 1, 2017.
MasterCard is implementing a liability shift for point of sale terminals in October, 2015. For pay at the pump, at gas stations, the liability shift is October, 2017. For ATMs, the liability shift date is in October, 2016.
American Express is implementing a liability shift for point of sale terminals in October, 2015. For pay at the pump, at gas stations, the liability shift is October, 2017. Discover is implementing a liability shift for point of sale terminals on October 1, 2015. For pay at the pump, at gas stations, the liability shift is October, 2017. Maestro is implementing a liability shift of April 19, 2013, for international cards used in the United States.

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