Top 5 Facts Merchants Need To Know About EMV

Transcription

1 Top 5 Facts Merchants Need To Know About EMV June, 2015 Lindsay Breathitt, Product Marketing Steve Cole, Product Management

2 Why EMV, Why Now Agenda U.S. market update EMV Top 5 EMV facts Understanding EMV integration approaches Preparing for EMV Questions 2

3 Why EMV, Why Now? U.S. card present fraud is above the world average and is increasing* Interoperability with global payments infrastructure Supports enhanced verification methods Offline PIN, Online PIN, Signature, No CVM 575 Million U.S. issued cards will have chips by end of 2015** *Source: Nilson Report, August **Payments Security Task Force (PST), MasterCard release 8/2014 3

4 What is EMV? EMV is a set of international standards that defines interoperability of secure transactions across the international payments landscape. EMV helps prevent fraud. Chip produces a one time code with every transaction, making it nearly impossible to counterfeit. 4

5 U.S. Market EMV Timeline Key dates October 1, 2015 Liability will shift to merchants for counterfeit fraud card-present POS transactions if the merchant does not have an EMV-enabled POS device April 1, 2013 Acquirer processors were required to support merchant acceptance of chip transactions. October 1, 2017 Liability shift takes effect for transactions generated from automated fuel dispensers More than $11 billion was reported stolen due to credit and debit card fraud in 2013, up from $8 billion Javelin Strategy and Research 2014 Identity Fraud Report 5

6 How EMV Works Step 4 Step 1 An EMV card is inserted into a terminal Step 2 The chip embedded in the card contains a unique issuer key; this is accessed by the reader in the terminal Step 3 Using the key from the card and data from the transaction, the chip creates and sends a unique code, or cryptogram to the processor s host with the approval transaction, allowing the issuer to validate the card is legitimate and not counterfeit The card is removed when the transaction is completed 6 6

7 Top 5 Facts About EMV EMV is about fraud prevention at the POS The U.S. has seen a 70% increase in credit card fraud since 2007, while the U.K. has seen an 80% decrease after migrating to EMV. Source: enture-payments-transformation-emv.pdf 7

8 Top 5 Facts About EMV EMV is a way to limit your fraud chargeback risk Consider EMV in light of fraud chargeback risk October 1, 2015 liability shift In 2015, that liability in the United States is estimated to total more than $10 billion Source: 8

9 Top 5 Facts About EMV Enabling EMV at the POS may also enable you to accept new contactless payment types. Contactless payments can be up to 25% faster than paying with cash. Source: Deloitte, content/uploads/2015/04/emv-the-next-twelve- Months-PYMNTS-ebook.pdf 9

10 Top 5 Facts About EMV Accept foreign cards that are already EMVenabled 45% of the World s payment cards are EMV 3.4 billion cards.* *Includes ~100 million cards in the U.S. Source: 10

11 Top 5 Facts About EMV EMV does not mean your data is secure Implementing a total secure payment solution includes: PCI Compliance, Tokenization, and Encryption from Vantiv 11

12 EMV Options Direct integration (Enterprise Merchant Approach) Stand alone terminal unconnected to POS (SMB) Integrated POS: EMV scope reduction (semi-integrated) approach (SMB) Terminal POS Middleware/ Gateway Processor Network EMV Level 3 Certification 12

13 EMV Ready Devices Get EMV ready 13

14 QUESTIONS? Visit to learn more about EMV, chip cards, and how to better protect your business. 14

15 THANK YOU! 15