The Agile Development Team has been working with several providers for the past 18 months to implement an EMV-ready solution. This work and certifications are finally complete and ready for deployment for anyone ready to make the switch.
A Few thing you need to know about the October 1st Liability Shift
After October 1, 2015, if a fraudulent transaction occurs, the liability belongs to whichever party has not yet adopted EMV chip technology. This means that the issuing bank or merchant could end up being financially responsible for the fraudulent transaction if they aren’t EMV-ready.
Card Present Transactions Only
The transition toward EMV technology and the liability shift only affects merchants who process card present transactions. Online transactions are not directly affected by EMV technology or the liability shift
Scenario 1 - A traditional magnetic stripe card is swiped by the customer at a magnetic stripe terminal. In this case, neither the issuing bank nor the merchant is EMV-ready. If the purchase is a fraudulent transaction, the merchant is generally not liable, just like today.
Scenario 2 - A chip card is used at a traditional magnetic stripe the only terminal. In this case, the issuing bank is EMV-ready but the merchant is not. If the purchase is a fraudulent transaction, the merchant is generally liable, since the issuer has made the investment to upgrade to chip technology and the merchant has not
Scenario 3 - A chip card is used at a chip-enabled terminal. In this case, the issuing bank and the merchant are both EMV-ready. If the purchase is a fraudulent transaction, the issuer will continue to bear the responsibility of the fraudulent activity, as they do currently.
A Few additional considerations:
Nothing significant changes about your operation on October 1st
The issue of chip-enabled cards is currently underway by most issuing banks. It is estimated only 25% of debit cards and 70% of credit cards will be chip-enabled by the end of 2015. The transition by the issuing banks is expected to continue through 2016 and beyond.
Chip enabled cards will include a traditional magnetic stripe allowing them to continue to work with legacy systems.
The EMV shift is not a law or a mandate for merchants.
Since the shift is not mandatory merchants should consider these questions when determining their EMV strategy:
- Total cost of implementation
- Current fraud and chargeback levels and liability
- Does the shift make sense in light of the potential impact on my business
- Current and future customer demand for this protection
All the currently available options are early in their life cycle. Other options may be available as the technology matures.
EMV hardware supports modern payment platforms such as Apple Pay TM and Android Pay TM
Next step to implement EMV today.
Since EMV transaction flow requires coordination between several providers to transmit and verify the validity of a chip based card transaction. Agile has aligned its current EMV initiative with TSYS Merchant Solutions to help with the EMV transition. Your Agile Customer Service Representative can get you additional information and connect you with the TSYS Merchant Services Sales And Implementation Team
Contact your Agile Customer Service Representative to discuss additional details.