Last year, there was a lot of buzz about the EMV mandate laws that came into effect on October 1st, 2015, but there are still many left feeling a little confused.
What is EMV? How does it directly affect my business? Why was there a shift to become EMV compliant? We’ll take you through everything you need to know about EMV compliance for the restaurant industry.
What is EMV?
Quite simply, EMV is a global standard for payment and processing which took effect in the U.S. on October 1st, 2015. Named after its original developers (Europay, Mastercard, and Visa), EMV technology features payment cards with embedded microprocessor chips that store and protect the cardholder’s data.
You might have heard of these cards being referred to as ‘chip and PIN’, ‘chip and signature’, or ‘smart cards’. Whatever you want to call them, almost everyone is carrying them.
Why the Change?
Believe it or not, the U.S. was the world’s last major market to become EMV-compliant. The new mandate, encouraged both banks and merchants to migrate to EMV technology, primarily to make credit card processing safer and more secure from card-related financial fraud.
Compared to the traditional magnetic strip that is susceptible to counterfeit and hacking, the new embedded chip in debit and credit cards, makes sensitive cardholder information nearly impossible to steal or duplicate.
Not convinced? Countries that have adopted EMV technology have reported a significant drop in card fraud compared to using magnetic strips.
What's This Got to Do With You?
The main reason you should have EMV on your mind is because you could be on the hook for any fraudulent chip card transactions, if you are not EMV compliant.
After October 1st 2015, the liability for card-present fraud shifted to whichever party is least EMV compliant. Prior to the October 1st 2015 cut off, if a customer came into your venue and racked up a hefty bill using a fraudulent card, the bank would have absorbed the cost. Currently, if you, as a merchant, are not EMV compliant with a chip card reader, you will be liable for the losses from fraudulent charges and will be required to pay out of pocket.
Though some merchants may have covered all their bases by becoming EMV compliant in 2015, the compliance was by no means mandatory. The only change that happened at the beginning of October 2015, was the shift in liability in the case of a fraudulent charge. In fact, 38% of U.S. merchants surveyed in 2015 by American Express said they either hadn’t decided or do not plan to upgrade to EMV-enabled POS systems.
Regardless, it’s important for you to know that TouchBistro has extensive experience with EMV and has been operating with EMV-compliant solutions in Canada and Australia for several years. We’ve worked closely with our payment processors to bring the same solution to the U.S.! As of October, 2015 TouchBistro has been EMV-compliant and offers a smart and reliable EMV solution to our U.S. customers.
About the Author
Taylor is a Content Marketing Manager at TouchBistro who writes about food trends, restaurant best practices, and tech innovations for the foodservice industry. She never says no to dessert and is on a life-long hunt for the best cheeseburger in the world.More Content by Taylor Moore