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Understanding EMV Technology

By June 25, 2015April 7th, 2022No Comments2 min read


This October, businesses are expected to make the switch to EMV technology. EMV, which stands for Europay, MasterCard, and Visa, is a global payment system that makes credit card transactions less vulnerable to fraud. Whereas traditional credit cards have a magnetic stripe that holds static information, credit cards with an EMV chip prevents transactions from being reused fraudulently. EMV cards are extremely difficult to counterfeit.

EMV technology is not new; it’s used by other countries around the world. In fact, the United States is the last major market in the world to not use EMV. We are finally making the move to EMV technology because fraud has become a major problem the U.S. can no longer ignore. The United States represents about a quarter of the world’s credit card transactions, but nearly 50% of the world’s credit card fraud occurs here. Our current swipe-and-sign system has made us very susceptible to credit card fraud. EMV technology will put an end to this system and instead requires consumers to inset their credit card into a slot in the payment system. The machine will read the EMV microchip, rather than a magnetic stripe. Consumers can still sign with the EMV system, but they can also use a Pin number, should they wish to better secure their card.

If you have been hearing a lot lately about EMV technology, you may have also heard the term “liability shift”. EMV technology presents a liability shift because banks and credit unions will no longer absorb the costs associated with fraudulent cards. Starting in October, the liability shifts to the retailer. If someone comes into your store and pays with a fraudulent card and you do not have an EMV card reader, the bank will not be liable. Rather, your business will be on the hook.

If you have not done so already, it’s important for your business to upgrade its ATM solutions and payment systems to be capable for EMV technology. Doing so will protect your business and customers from credit card fraud.