Get your practice ready for changeover this year to new microchip-embedded debit and credit cards, or assume liability for any fraudulent transactions.
The U.S. credit card industry is determined to ditch its outdated magnetic-strip credit card technology this year and join the rest of the world in using the more secure processing system called EMV® — short for EuroPay, MasterCard, and Visa — which is the global standard for cards equipped with computer chips and the accompanying technology to verify transactions.
Major U.S. credit card issuers have set an Oct. 15 deadline for banks and retailers to upgrade their card-reading equipment. After Oct. 15, if a fraudulent transaction occurs in a business that has not converted to the new system, the business incurs the liability.
The United States is the last major market still to use the old-fashioned swipe-and-sign system. This system is so vulnerable to theft that while only about one-quarter of all credit card transactions happen in America, our market accounts for almost half of the world's credit card fraud – to the tune of some $8.6 billion per year.
After Europe adopted the system a decade ago, fraud dropped drastically, and experts believe that's why credit card fraud in the United States has doubled in the last seven years as criminals abandon countries using the more secure technology and flock to easier pickings here.
"Chip and Pin" Versus "Swipe and Sign"
EMV-enabled payment cards have embedded microchips that store the cardholder's information, and users must enter a PIN to complete a transaction. After a cardholder inserts the card into a card-reader slot and enters a PIN, the new system uses a multistep authorization process that involves cryptographic technology to authorize a transaction. A cryptogram that changes with each transaction makes EMV cards more secure to use, unlike magnetic strips that are static and easy to counterfeit.
Find out how to become EMV-ready with TSYS®, a TMA-endorsed member service for payment processing, to avoid liability and save money.
You'll not only avoid liability for fraudulent transactions by upgrading to EMV-compatible equipment, you also might lower your processing expenses by potentially reducing compliance fees. Mention your TMA membership to receive exclusive pricing and contract terms for all services.
TSYS® is offering new customers an EMV-ready terminal for $199; call (800) 613-0148 for more information.*
For more information on TMA-endorsed vendor services, visit TMA's website or call 800-880-1300, ext. 1406.
*$199 terminal purchase offer valid for new TSYS® customers only. Terminal offer expires March 31, 2015. All accounts subject to credit approval; some restrictions or exclusions apply. EMV is a registered trademark in the United States and other countries and an unregistered trademark in other countries, owned by EMVCo. TSYS® is a registered ISO/MSP of Wells Fargo Bank, N.A., Walnut Creek, Calif., and Synovus Bank, Columbus, Ga., for Visa and MasterCard transactions only.
Action, March 2, 2015