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35054456_sThe EMV (Europay, MasterCard and Visa) deadline just passed for U.S retailers. So far one of the most consistent things across the articles we have come across is just how inconsistent the EMV facts seem to be.

So we have separated some of the myths from the realities about this new retail technology.

Myth #1: EMV Compliance is Mandatory

The reality: there is no mandate for compliance.

Contrary to the standard from the Payment Card Industry (PCI) surrounding data security, there aren’t going to be set financial penalties for retailers who fail to comply. Rather, there will be a shift in liability for any fraudulent transactions.

From October 1, that liability will shift to the least secure link in a payment transaction. So if a customer comes into your store with a chip-enabled credit card and you don’t use EMV retail technology, the credit card issuers are no longer responsible for the chargebacks that result from a fraudulent card being used. That liability will now be shifted to the acquiring bank who will pass it on to the merchant.

Myth #2: Retailers will Be Responsible for ALL Fraudulent Transactions from October 1 2015

The reality: retailers are not going to be held responsible for certain kinds of fraudulent transactions.

A fraudulent transaction is a retail transaction that involves the use of a counterfeit or stolen credit card. Retailers will not be held liable for fraudulent transactions involving:

  • Non chip-enabled cards
  • Lost or stolen cards
  • Merchant gift cards

Myth #3: Every Single Customer will have a Chip-Enabled Card By October 1

The reality: According to the Payment Security Task Force, only 63% of credit cards will be chip-enabled by that date.

Myth #4: EMV Compliance is Expensive

The reality: the cost to migrate to this new retail technology varies across merchants.

There are various factors that determine the actual costs of achieving EMV compliance, including your current payment terminals, your POS software and current processor and switch configuration.

The Bottom Line

There’s bound to be a multitude of confusion and myths about this big migration for retailers. Take your time to understand the information you receive from your retail technology partners and take your time developing a strategy that will make sense for your store.

If you need help with migration in your store, get in touch with Vision33 today.