In response to a then-growing number of fraudulent credit card purchases, major credit card issuers like American Express, Mastercard, Visa and Discover began transitioning to EMV chip cards in the United States in 2015. EMV is shorthand for Europay, Mastercard and Visa, and it’s currently the global standard to authenticate purchases made with a debit or credit card. No matter what industry your business competes in, it’s vital that you’re able to accept payments made with EMV cards. If you’re not set up to handle EMV transactions, you may be liable for any fraudulent purchases processed through your business. The deadline for being EMV-compliant was October 1, 2015. Since that time, the least EMV-compliant party in the payment process is liable for fraudulent transactions made at a retailer’s establishment. If your POS system can’t process payments made with EMV credit cards the way they’re meant to be used, that could be you.

Which Transactions Require a Signature?

EMV cards are easy to spot thanks to a small, metallic square. This square is a computer chip that creates a unique transaction code for every purchase. Since the code cannot be used for another purchase, EMV cards offer more security than cards with unchanging magnetic strips, which are easier to counterfeit. Depending on a merchant’s POS system, customers can use an EMV card in several ways to complete a purchase. Many systems accept payment by having a shopper insert their credit card in a terminal slot, known as “dipping.” You can also use an EMV card as a contactless card at POS systems that are compatible with near-field communication (NFC) technology. If you’re wondering which credit cards require a signature if they’re EMV-compliant, the answer is, none! From April 2018, EMV-enabled businesses have the option to stop capturing signatures as a way to combat fraud. This rule applies to all transactions at EMV-enabled terminals for any purchase amount. While this setup is the case, some EMV-enabled merchants may prefer to collect signatures as an additional method of cardholder verification, but they’re not required to do so. The use of a personal identification number (PIN) has not changed. For example, any debit card processed as debit only requires a PIN and no signature.

Contact the Experts at Velocity Merchant Services

Although non-EMV-compliant POS systems can still accept payments made with EMV cards, they force shoppers to pay by swiping their magnetic strip. Because the information associated with a magnetic strip is static, it makes swiped cards susceptible to theft and subsequent fraudulent transactions. As a result, you may be liable for purchases if your business is the least EMV-compliant part of your payment processing chain. Don’t take any chances! Contact the experts at VMS so we can set you up with a state-of-the-art POS system. Our technology processes all transactions securely, including payments made with EMV credit and debit cards. Explore our offerings today.

Have questions?  Talk to one of our Small Business Specialists.