Over the last year, the concept of “EMV” (Europay, MasterCard, and Visa) has achieved mass recognition within the U.S. There are over 1 billion EMV cards used throughout the globe, and the system is the standard for debit and credit payments in many European countries. Despite this, the U.S. has lagged behind in the transition to chip and pin technology – until now.
Research into the industry has indicated that by the end of 2015, around 59% of businesses in the U.S. will be “EMV-compliant” and thereby improve their protection against fraud. However, as financial institutions of all sizes and ambitions prepare for EMV migration, many hold more questions than answers, leaving IT solution providers to wonder how they can assist their clients – and the clients of their customer – prepare for the EMV transition.
1) Remind Your Customers to Re-Think Their Reliance on Ecommerce: Experts predict that fraud involving “card-not-present” transactions will increase significantly after EMV execution, due to online crimes being easier to commit than retail fraud. For those that can’t convert to POS systems, the best way for IT providers to protect themselves is to ensure that they’re following the best practices available for conducting card-not-present transactions. This may include verifying the CVV2 security codes of cards for all transactions, using address verification in the form of AVS match, and staying alert of suspicious transactions.
2) Encourage a Realistic Timeline: The next step in preparing your clients and their customers for the EMV shift is to encourage them to adopt a realistic timeline for the conversion to take place. In order to comply with the mandates set by MasterCard, Visa, and AmEx regarding the Fraud Liability Shift, clients will need to take numerous steps on their EMV journey. Though some experts believe that complete EMV integration within the U.S. may take until 2018 , some clients may be able to move faster if they are prepared. For instance, there are a number of popular products and services available today that are already EMV-ready; from card personalization SaaS, to instant insurance platforms, certain aspects of the EMV transition could only take months, or even weeks.
3) Push Them to Identify Security Gaps: Although the EMV transition will make the world of financial transactions more secure throughout the U.S., it is important to remember that security gaps will still exist. With so many reports of fraudulent transactions and data breaches taking place over the years, it is not surprising that customers and business owners both have security at the top of their minds. EMV implementation should help consumers and businesses see significant reductions in instances of fraud, however, IT providers will still need to consider every aspect of their transaction system. Companies can be particularly vulnerable to different forms of criminal attack, and penetration testing could help shine a light on the areas that fraudsters may choose to exploit.
4) Educate Your Clients and Their Customers: Finally, make sure that your clients and their customers are educated regarding what they should expect from the EMV shift. Although they should know that EMV integration is a huge step forward for security in the U.S., they should also be aware that it is not a form of impenetrable protection against all forms of fraudulent activity. Hackers will always find new ways of exploiting systems if they are diligent enough; an example of this could be internet transactions where cards are not present – these will continue to be a vulnerable area for many. Clients should be careful and open a good line of communication with their customers about EMV integration and what they should expect.
The Bottom Line
Adopting the EMV standard for payment is one of the smartest decisions most companies can make. In addition to protecting companies from fraud liability, it can also make transactions more secure for their customers. However, it is still important to be as educated as possible when moving forward with the EMV integration.
This article was originally published online by Business Solutions Magazine and was written by Billy Cripe, Chief Marketing Officer of Field Nation.