As the adoption of EMV Chip technology continues to grow, it is important to understand the advantages of EMV and when EMV is applicable. EMV mainly protects merchants from fraudulent and counterfeit activities in card present scenarios. In addition, when a chip card is used in an EMV payment device, if the purchase is a counterfeit transaction, the merchant is not liable and the issuer continues to bear the responsibility of counterfeit fraudulent activity. Therefore, the merchant should see a significant reduction in chargebacks.
With EMV, in a card not present scenario the EMV liability shift rules do not apply. Instead, the liability remains subject to existing liability and chargeback rules. This is important to understand if your business takes credit card payments over the phone or online. Using EMV payment devices to manually enter the credit card number still yields some benefits, like encryption, however.
If you are considering a fully validated P2PE solution, you will get additional benefits tied to PCI. The POS should be removed from your PCI scope and the PCI questionnaire will be dramatically reduced as well. With our fully validated P2PE solution we provide a portal to manage the devices and their status, as well as an audit report. All of this will have a positive impact on your PCI audit – less resources and lower cost. Another benefit with fully validated P2PE are the tamper-resistant terminals.
So as you can see there are many reasons to move to EMV: reduce chargebacks, PCI scope reduction, encryption at the time of card swipe/insertion, and enhanced security against fraudulent cards.