Chip Cards Coming: EMV Compliance Deadline October 1st
Elite Merchant Solutions wants to update its clients about the EMV deadline coming up quickly on October 1st, 2015. In October, every merchant must be prepared to accept the next generation of plastic – with embedded smart chips – or be responsible for fraudulent card-present transactions that occur when customers are using chip cards.
The U.S. is moving to new chip cards based on a global standard called EMV, already in use in 2.37 billion payment cards worldwide, to enhance in-person payment security for consumers, merchants and issuers. EMV chip cards contain secure computer chips that validate the authenticity of the card and include a one-time use security code in every transaction, making chip payment data virtually impossible to use for counterfeit card fraud. Starting in October 2015, the payment brands will shift the responsibility for any fraud resulting from a payment transaction to the party using the least secure technology. Fraud liability shifts” for card issuers and merchants are meant to help synchronize the timelines to move all industry stakeholders to implement chip technology.
EMV technology is simple and cost effective, plus gives your business the latest Apple Pay, Samsung Pay, Google Wallet and CurrentC acceptance capabilities. Elite Merchant Solutions is fully EMV compliant and will make sure its clients will comply to the October 1st deadline.
EMV Liability: What Does the Liability Shift Mean?
October 1, 2015 is the effective date that the counterfeit, lost and stolen, and non-receipt fraud liability shifts from issuers to merchants.
- The exception is Automated Fuel Dispensers that will remain as is until October 2017.
- Merchants that do not incorporate EMV technology will assume financial responsibility for fraudulent transactions.
- EMV is still required for In Store terminals.
Late adopters of EMV will be small and micro businesses.
- Indications are that around 35% of small merchants do not understand what EMV means to their business.
- Ninety percent of data breaches involve small/medium sized businesses.
The U.S. marketplace at the end of 2015
- Of the 1.2 billion payment cards in circulation by years’ end, 756 million (63%) will be EMV enabled chip card.
- More than 46% of retailers are projected to be EMV-capable.
Liability Implications of EMV
In U.S. today:
- Fraud in card-present environments is absorbed by Bank/Issuer unless merchant fails to meet POS acceptance and dispute resolution requirements
- Losses are offset when dispute resolution requirements allow liability to be shifted through “chargeback process” to Acquirer/Merchant
- Merchant/Acquirer takes liability for merchant data breaches or skimming attacks
Fast forward – October 1, 2015 with EMV:
- Counterfeit fraud losses “shift” to party who does not enable EMV if fraud would have been avoided if EMV had been used. Merchant must run as an EMV transaction.
- Party that cannot support either online or offline PIN (if a chip card is PIN preferring) will hold the liability in the case of chargebacks resulting from lost or stolen card fraud
Equal capabilities = issuer holds liability
EMV Liability: Myth vs. Reality
Myth: The EMV liability shift represents a shift of liability for all fraudulent transactions.
False, in fact the EMV liability shift in October only accounts for the face-to-face or in person fraudulent transactions. EMV liability for counterfeit and lost/stolen fraud transactions shifts to merchants from issuers—if merchant hasn’t implemented EMV technology. Internet or Keyed transactions are unaffected by this shift.
Myth: EMV is a phase and will quickly go by the wayside.
False, EMV is coming, and it will not go away anytime soon. It is already the current standard in much of the developed world. The USA one of the last countries to get on board.
Myth: Merchants can buy their way out of the EMV shift.
False, all merchants accepting cards face to face without using EMV will be liable for any fraudulent charges that result. This is not an option or a mandate that can be bypassed by paying a fee.
Myth: PIN = Debit, No PIN = Credit.
False, PIN entry is a security function for all EMV cards regardless of “Credit” or “Debit” that Issuers are adopting to enhance security around cardholder authentication.
Myth: We can do tip line/tip adjust on a vx520 for EMV transactions.
False. The vx520 does not support tip adjustments after the initial authorization on the Omaha platform. First Data is looking at offering a pin-bypass feature in future releases.
Myth: Restaurant POS systems are going to be 100% ready for EMV, (offering tip adjust, etc.).
More than likely, no. Currently there are only 5 POS systems that are certified for EMV on Omaha.
Myth: Restaurants are a major target of the fraud that the EMV Liability shift represents.
No. Typically speaking, restaurants have very low amounts of card-present fraud.
Elite Merchant Solutions Partners with Amex OptBlu
Elite Merchant Solutions is one of the first processors in the country to offer Amex OptBlue to its merchants! With OptBlue, Elite Merchant Solutions has the flexibility to provide U.S. small merchants the benefit of a single statement, one settlement process, and one contact for all the major card brands. This program will help deliver a smart and easy solution for U.S. small merchants to enjoy the benefits of American Express Card acceptance while making it convenient for consumers to shop year round.
OptBlue simplifies the merchant card acceptance experience by providing an all-in-one solution where small merchants benefit from the ease and convenience of having a single source for all of their servicing, processing and contact needs. It's an exciting addition to the suite of options Elite Merchant Solutions offers small merchants.
Justin Milmeister has earned the designation of Certified Payments Professional
The Electronic Transactions Association (ETA) is pleased to announce that Justin Milmeister has been granted the designation of Certified Payments Professional™ (CPP).
By successfully meeting the rigorous certification examination requirements, he has joined an exclusive community of electronic transactions professionals who have earned this distinguished certification. In doing so, Justin Milmeister brings the highest level of expertise and distinction in electronic transactions to Elite Merchant Solutions. Recognizing the unique skills and special knowledge required of electronic transactions professionals, ETA launched the certification program in 2011.
In addition to meeting the program's education and experience requirements, those awarded the CPP™ designation must complete a minimum of 36 hours of industry-related continuing professional education every three years.
More and more employers, faced with critical staffing decisions, consider the CPP™ credential an added value to current and prospective employees. Further, a competent CPP-certified staff is crucial to maintaining a competitive advantage in the field.
Justin is the lead guest OC Talk Radio
Justin Milmeister, CEO of Elite Merchant Solutions, will be the lead guest on June 8th's segment of Pilgrim Talks with the Pilgrim on the 405 on Southern California's OC Talk Radio. Justin will speak on behalf of CEOs and business owners who are known for their accomplishments in the field of Customer Service and who are proactively working through customer service issues in this marketplace. The show will take place on Wednesday, 5:30 PST, June 8th 2011.
How To Become a Leader Not a Manager
Justin Milmeister: "Actions Speak Louder Than Words"
If you want to be a great leader and gain respect among employees you need to have earned your stripes.
Showing them you are still willing to roll up your sleeves when necessary to get the job done goes a long way in regards to what you'll get back in return. You need to give the employees enough space to spread their wings and come up with ideas to make the business more efficient. Encourage self-sufficiency and serve as a guide.
Kicking your feet up and letting your team do the grunt work is HUGE negative. You will not only lose the respect of your employees but in addition, good employees will be one foot out the door and soon gone all together. The quality of your work force will suffer. There are many mistakes one can make as THE BOSS. Unwillingness by a boss to practice what they preach is a HUGE one. It becomes transparent to the employee that you believe yourself to be above them.
My best tip is an age old saying: work hard and play hard. And show your employees appreciation. At Elite, we implement several nights out: bowling night, family BBQs, rewards and recognition dinners, etc.... This encourages your employees' loyalty, as they see you in a personal setting and it becomes more than just a job.
Game Changers for 2011
Justin Milmeister: I believe the Durbin Amendment is a game-changer in our industry along with the IRS reporting requirement. The Durbin Amendment was implemented to lower the fees paid by merchants for debit card transactions. It may seem relatively simple in theory, but it is far from that.