EMV Payment Systems

The term “EMV Payment Systems” might not be familiar to you. Don’t worry, it isn’t for most people yet. EMV is the label used for a new form of smart card just being introduced in the United States.

But the U.S. is way behind the rest of the globe. In fact, we are the last major market to switch to EMV smart cards. The last few years we have seen some serious security breaches with major big box retail giants Target and Home Depot.

Millions of customers had their sensitive information stolen and many of them are still feeling the repercussions today.

There have been some big changes over the last few years with credit cards. Traditional magnetic stripe cards just don’t cut it anymore.

EMV smart cards are credit cards which use a built in microchip to verify and authenticate purchases. The microchip does the work the magnetic stripes used to do, only better.

The microchip encrypts the user’s information and every time it is used it creates a unique transaction code. This code is a “one use only” code.

Because it can only be used once, fraudsters attempting to steal the user’s information are not able to because the information is either unable to be copied because of the encryption or because they can’t reuse the transaction information, or both.

Your business is required to accept these types of cards as of October 2015, otherwise you are liable for any fraud.

Thus, if you haven’t already, you will need to make some changes to the hardware and software you are currently using before you are able to accept these smart card payments. There are a few different types of payment systems available which will accept EMV cards.

If you use traditional payment terminals which have the PIN pad, signature screen, and card swiper, you will need to replace it with one which has a EMV smart card slot built into it. They look almost identical to the old ones except they have a small slot on the front where your customer can insert or “dip” their card into.

This slot is the EMV smart card reader and also the portion of the terminal which communicates with the EMV microchip in the card. Without this little slot it can’t communicate with the microchip. New smart cards still have the magnetic stripe on them for now, so it can still be used for payments. But not for too much longer.

Within the next few years we should start to see these disappear and credit card terminals and payment systems will have to be equipped properly to accept any credit card payment. The last thing you want is for your business to fall behind. Don’t get caught lagging.

Some small businesses use payment systems with a POS which is either a tablet or smart phone with card readers attached to them. If this is your business, there is help for you.

There are smart card readers available as an attachment similar to the swipe attachment you are currently using. It’s a miniature version of the slot on large payment terminals and works just as effectively.

If you do a lot of business mobily, this is perfect for you. It enables you to continue accepting credit card payments in the same way as before, just with a smart card reader.

But don’t throw away your swipe attachment just yet! Most of your customers probably have yet to receive their EMV smart cards and will still use their magnetic stripe cards to pay for things.

If you really want your business to be ahead of the game, and if it works for your budget, you could upgrade your system to a wireless payment system. Apple Pay is a wireless payment system recently introduced to retailers and consumers.

With this system, the EMV card communicates with your terminal wirelessly. All the customer has to do is tap their card on the terminal reader and it conducts the transaction wirelessly.

The customer will still need to either enter their PIN number or sign for their purchase, but they can skip the “dipping” of their card into the reader.

The slot reader does take a few moments to communicate with the EMV microchip in the smart card, so having this wireless option makes it a little easier. The customer doesn’t have to wait the “agonizing” extra few moments it takes to authorize their card.

This seems to be the direction all technology is headed and EMV payment systems are no exception.

So, if you really want to provide your customers with the latest and most convenient form of payment system available, go with a wireless payment system.

With each type of EMV payment system there are software changes that will occur too. Each one has it own type of software requirements.

Regardless of the EMV payment system you decide on, you at least need to make sure you do decide! It won’t be long before the majority of credit card users will be using EMV cards. Don’t be left in the dust of your competition!

Get ready, because the “New Wave” of credit cards are already hitting the market!

We are pretty sure you probably still have a lot of questions about it. There are no silly questions when it comes to the world of credit card processing and payment systems.

RedFynn Technologies is on the cutting edge of this industry and our sole focus is the growth and success of your business. This is why we have a dedicated, live customer support line: (888) 510-9871.

We have the answers to all of your questions. Give us a call!