(CHICAGO) October 5, 2015 – In light of the recent EMV payment migration deadline, which took place October 1, 2015, NAMA is encouraging members to educate themselves on EMV rules and assess the changes, if any, they need to make in their businesses.
To help provide a better understanding of EMV payments, NAMA’s Knowledge Source Partner and refreshment services technology expert, Michael L. Kasavana, Ph.D, shares some key insights:
What is EMV?
“EMV, which stands for EuroPay MasterCard and Visa, is a secure payment technology built on credit and debit cards featuring a microprocessor chip rather than a magnetic stripe. EMV offers a more secure transaction through the embedded chip, helping to prevent credit card fraud,” Kasavana said.
What does the EMV migration mean for our industry?
“The migration to EMV will affect retailers across the country, including industry members who use card-reader technology. The October 1 deadline initiated a shift in fraud liability from card issuers to entities that are not EMV-compliant, meaning if a retailer has not updated their card reader to accept EMV payments, they could be directly liable for any fraud that occurs,” Kasavana said.
“According to news reports, as of October 1st a large percentage of U.S. merchants are still in the process of becoming EMV-compliant, and many consumers across the country still have not received updated credit cards with the chip, so this migration will likely be an ongoing process over the couple of years. Additionally, while EMV acceptance and the use of a PIN is encouraged by banks, it is not mandatory. I encourage industry members to fully assess their payment setup by consulting their credit card partners and financial advisors to determine what risks they face and if they need to make any changes to accommodate EMV payments,” Kasavana concluded.
For a more in-depth look at EMV payments read Dr. Kasavana’s post Understanding EMV Payments from his blog, Dr. K’s Tech Times, here: http://www.vending.org/technology/blog/544-issue-5-may-2015.
Founded in 1936, NAMA is the association representing the $25 billion U.S. vending and refreshment service industry. With more than 1250 member companies – including many of the world’s most recognized brands – NAMA provides advocacy, education and research for its membership. Visit NAMA on Facebook, Twitter and LinkedIn.
