By October 1, 2015, the United States will earnestly begin the shift to the chip card technology global payment system called EMV (Europay, MasterCard, and Visa). Until now a comparatively small number of card companies in the U.S. have implemented chip payment capabilities, though most of the world has already done so. However, with the rise in card-present fraud due to information stolen from the much less secure magnetic strip cards, the time has come for a change. With EMV, consumers and merchants will be drastically safer from card-present counterfeit transactions. But if history has taught us anything, EMV will not reduce fraud overall; instead, fraudsters will shift to other, less secure payment channels. More specifically, we can expect a dramatic rise in card-not-present fraud.
As a business owner, customer service complaints are your worst nightmare.
A 2011 survey by Harris Interactive found that after receiving poor customer service, 89% of consumers began purchasing from a competitor. Another survey by Zendesk found that businesses are more patient but still definitely turned off by bad service: 66% of B2B (business-to-business) customers stopped buying from a vendor after a bad interaction.
Many large merchants with complex POS systems choose to enable EMV using middleware that integrates their EMV card readers with their POS system. A well-designed middleware solution will isolate card data so that it never touches the POS. The POS (“selling system”) reaches out to the middleware with a request for payment, and then the middleware directs the actions of the EMV card reader through the completion of the transaction. If the combination of middleware plus EMV card readers (the “selling system”) are the only components ever touching card data, the POS is no longer a part of the payment transaction, offering significant PCI scope reduction.
This article explains differences in security and flexibility in selecting tokenization approaches.