We have compiled a list of questions that customers have been asking regarding the so-called "Chip cards" also known as EMV.
Q: What is EMV?
A: EMV is an encrypted communication system that allows a credit card with a "smart-chip" installed to communicate with the card issuer so that the card can be authenticated as a card that was created by the issuer.
Q: What changed on October 1st 2015?
A: Card processing companies (VISA, Mastercard, Discover, etc) are now enforcing a "liability shift" for certain transactions. For card-present transactions (ONLY) the liability for a fraudulent transaction goes to the party that is the "least EMV compliant". In a case where Swiper1 is used, that would be Click & Pledge. You (C&P Customers) are NOT liable since Click & Pledge protects all Swiper1 transactions with our fraud protection policy.
Q: What percentage of transactions would the liability shift affect?
A: To date ZERO* transactions using Swiper1 (or USB card-swipe) at Click & Pledge would have triggered the liability shift.
Q: Could the liability shift affect me now or in the future?
A: NO! You are already covered by Click & Pledge's fraud protection guarantee. If a fraudulent charge occurs, then Click & Pledge will absorb any fees associated with that transaction.
Q: Can I still process a "chip card" on my Swiper1 device.
A: Yes! Even though the card has an EMV chip, it still contains the magnetic stripe on the back. All cards will continue to have a magnetic stripe for the forseeable future.
Q: What's the bottom line?
A: Click & Pledge has determined that:
- there a very low probability of a fraud charge where the liability will be different than before October 1,
- your cost for an EMV reader device would be 3+ times the cost of our current hardware,
- the hardware would be bulkier and more difficult to use in a "mobile" environment,
- our fraud protection means that you are completely covered for any fraud related charges on any Swiper1 transaction.
- YOU are not responsible for any fees for a fraudulent charge using Swiper1 because of our protection policy.
Click & Pledge does not see any advantage in developing and deploying EMV compliant hardware.
* This was determined by an analysis of all card-present transactions from January 2013 through March 2015 by Click & Pledge and TSYS's EMV certification team.