DO YOU KNOW WHY YOU WERE ISSUED NEW CREDIT CARDS? YOU KNOW, THE EMV CHIP…?
By: ACI WorldWide
A staggering number of consumers are neither educated on nor aware of the EMV chip; they don’t know why they have new chip-enabled cards,” said Mike Braatz, senior vice president, Payments Risk Management, ACI Worldwide. “And if consumers are unaware, the implications for retailers come October and throughout the holiday shopping season could be major, especially as retailers prepare for this new payment experience. Although October is the date for the liability shift, we know issuers, acquirers and retailers are still working on issuing cards and upgrading payment acceptance systems to address EMV.”
EMV is a global standard for credit and debit payment cards based on chip card technology taking its name from the card schemes Europay, MasterCard, and Visa—the original card associations that developed it. The standard is now managed by EMVCo, a consortium with control split equally among Visa, MasterCard, JCB, American Express, China UnionPay, and Discover. As of October 2015, any purchase made at a terminal where EMV could be used but is not, the liability for any card-present counterfeit fraud losses will be put on the party that is responsible for a non-chip transaction. Yet, as retailers and banks participate with the EMV liability shift—which moves fraud liabilityfrom issuing banks to merchants —many consumers are simply in the dark about what EMV means.
*ACI’s Universal Payments (UP) portfolio has EMV solutions addressing card and smart emv chip management issuing, transaction processing and acquiring and payments risk management. For more than 15 years, ACI has played a lead role in the enablement of EMV around the world.