Smart Cards And Chips. How Do They Protect You?

Dec 23, 2016

In 2016, new chip debit and credit cards were issued to consumers by major financial institutions. According to the US Payments Forum, 600 million cards have been issued. How do these chip cards protect consumers?

EMV (Europay/MasterCard/Visa) chip cards are designed to protect you from data breaches. The system has been used in European countries and Canada for decades. 90% of non-US credit card terminals are estimated to be enabled for EMV chip cards.

If you are using an EMV chip card, the liability for fraudulent charges must be imposed on the party with the least compliance with EMV. Below you can find more details on the transition to EMV chip cards:

  • If you choose to use your card at a card reader that is chip-enabled, you may not be able to use credit when checking out. The transaction will be finished after entering your unique PIN code.
  • More time will be required for transaction processing. You should leave the card in the card reader while the transaction is being processed. If you don’t wait until the entire process is completed, the transaction will be canceled.
  • It is good to monitor activity on your account on a regular basis. With the majority of financial institutions and credit card companies, you need to get paper statements and online options so to be able to monitor your account.
  • The EMV technology won’t provide protection for online shopping. According to the Federal Trade Commission, no change is expected in the way consumers use their card online or by phone.

Merchants interested in opening a secure and reliable merchant account should consider turning to EMB. is voted the #1 high risk payment processor in the US and boasts an A+ rating with the BBB. EMB is one of Inc 500’s Fastest Growing Companies of 2016 and is rated “A” by Card Payment Options.

Because of technological and regulatory challenges, MasterCard and Visa have postponed the deadlines on EMV liability at automated fuel pumps from October 2017 to October 2020. So merchants now get 3 more years to switch from traditional mag stripe-based card scanners to chip readers before they would financially be liable for fraud at the POS.

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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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