3 Common Misconceptions about EMV

Sep 08, 2016

EMV chip cards, the more secure cards with data-encrypting chips are the latest major innovation in the card payments industry. Card issuers and banks continue to do their part to ensure that every customer has these cards. Retailers on their part are in a rush to deploy new point-of-sale terminals that support them.

With this EMV migration rollout proceeding full steam ahead, a lot of misconceptions have cropped up across the payments ecosystem. Here are three most common misconceptions.

EMV reduces all payment card frauds

Each time you complete a transaction using EMV, unique data is created and this makes it really hard for hackers to copy and use the information on that credit card.

But that is as far as its protection goes: the card. With that area closed for fraudsters, experts predict an increased online fraud as alternatives to these data thieves. Your organization must therefore consider implementing a holistic, layered security measure as the best approach to data security.

EMV keeps organizations safe from all data breach

Because you have successfully implemented the EMV migration, now your organization is safe from any form of data breach, right? Wrong!

EMV primarily works to provide mechanisms to check and validate a card, and that’s how it prevents thieves from counterfeiting or duplicating cards.

But like any organization that deals with card payments, your organization collects and keeps customer information such as names, credit card information and addresses on a central database. Fraudsters can still use sophisticated malware exploits to access this data.

That’s why you should always get the help of a secure encryption and tokenization platform such as emerchantbroker.com to work in combination with the encrypted EMV devices in your environment for safe EMV credit card processing.

Support for EMV is mandatory

The EMV functionality is a choice you make as a recommended security upgrade and not mandated as many people assume. Following the October 1, 2015 Fraud Liability Shift though, in the event that a fraudulent card use occurs, you personally become liable to the loss realized if you are using a less secure technology. Notice that in the past, the card issuer would be held liable to such losses.

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Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending on the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

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