What is chip card technology?
Chip technology is an evolution in our payment system that will help increase security, reduce fraud and enable the use of future value-added applications. Chip cards are standard bank cards that are embedded with a micro computer chip. Some may require a PIN instead of a signature to complete the transaction process.
What is EMV?
EMV chip technology is becoming the global standard for credit card and debit card payments. Named after its original developers (Europay, MasterCard and Visa), this smart chip technology features payment instruments (cards, mobile phones, etc.) with embedded microprocessor chips that store and protect cardholder data. This standard has many names worldwide and may also be referred to as: "chip and PIN" or "chip and signature."
Is this technology unique to the United States?
No. The chip technology standard for payment was first used in France in 1992. Today, there are more than 1 billion chip cards used around the world. The U.S. is one of the few industrialized nations that have not fully transitioned to this technology standard.
Why should I partner with Chase Paymentech to implement this technology?
We have been supporting chip technology in Canada for several years, and we are playing an active role in ensuring our merchants are ready when the U.S. payments industry mandates it.
Our Future Proof terminal is the first in the U.S. to be certified to accept both contact and contactless EMV transactions for Visa®, MasterCard® and American Express®.
Why should I invest in chip card acceptance now?
Preventing the growth of fraudulent activity is one of the main reasons the industry is moving toward EMV technology. Chip cards make it difficult for fraud organizations to target cardholders and businesses alike. As a result, more and more chip cards are being introduced by U.S. financial institutions in order to support and switch over to this technology.
What other incentives are there to accept chip cards?
In addition to the reduction of fraud and related chargebacks, there are other cost savings associated with EMV acceptance. The payment brands are doing their part to ensure that chip-bearing customers can pay at chip-enabled businesses.
For example, Visa® and MasterCard® have issued upcoming rules and guidelines for processors and merchants to support EMV chip technology. Visa is introducing their Technology Innovation Program (TIP) to the U.S. region, which waives an annual PCI-DSS audit if 75 percent of the merchant’s Visa transactions are processed through a dual contactless and contact EMV certified device. MasterCard is introducing their PCI-DSS Compliance Validation Exemption Program to the U.S. region, which also waives the annual PCI-DSS audit if 75 percent of the merchants’ MasterCard transactions are processed through a dual contactless and contact EMV certified device.
Another Visa and MasterCard ruling is the liability shift. Once this goes into effect, merchants who have not made the investment in chip-enabled technology may be held financially liable for card-present fraud that could have been prevented with the use of a chip-enabled POS system.
How is a chip card different from a traditional payment card?
A chip payment card looks just like a traditional card with an embedded chip in addition to the standard magnetic stripe on the back of the card. What you see on the card is not the actual microchip but a protective overlay. The microchip provides an additional level of authenticity for the transaction.
What do I do when a customer presents a chip card?
Chip cards will still have a magnetic stripe during the U.S. migration to EMV to ensure that customers can continue to pay until all merchants have been given the time to upgrade their equipment.
How does EMV chip technology work?
Your EMV-enabled device will communicate with the chip inside the customer’s smart card to determine whether or not the card is authentic. Generally, the terminal will prompt the customer to sign or enter a PIN to validate their identity. This process enhances the authentication of both the card and cardholder, effectively reducing the possibility that your business will accept a counterfeit card or be held liable for a fraud-related chargeback.
Will I still be able to accept traditional credit and debit cards?
The Future Proof terminal has a magnetic stripe swipe reader and you can continue to accept payment cards that are not chip-enabled.
Chip cards will still have a magnetic stripe during the U.S. migration to EMV, to ensure that customers can continue to pay until all merchants have been given the time to upgrade their equipment.
How will chip cards impact the checkout experience at my business?
To process a chip card transaction, follow these four simple steps:
What do I do if my customer is using their chip card for the first time?
Make sure the card is inserted into the terminal’s chip reader slot face up with the chip first. The card must stay in the terminal’s chip reader slot for the duration of the transaction, which ends when the receipt is being printed. If the card is removed before the end of a transaction, the payment will not be processed.
What if I have more questions?
The Quick Reference Guide for our Future Proof Terminal has many tips and troubleshooting steps specifically related to chip cards.
As you become familiar with chip technology, remember that you can call for technical support if you have any questions.