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The EMV transition is scheduled to go into effect Oct. 1, 2015. This switch will require all DME retailers to get a new POS machine and access upgraded EMV processing technology.
What is EMV?
EMV is a global payment system that entails putting a microprocessor chip into debit and credit cards, making them less vulnerable to fraud for in-person transactions. Because EMV uses better data security, this standard is being adopted in the United States with a deadline of Oct. 1.
EMV cards have been proven to dramatically reduce credit card fraud. The United States has lagged behind other countries that have already improved credit card security using EMV. Although the U.S. accounts for just 25% of the world’s credit card transactions, more than 50% of all fraudulent transactions happen here. EMV technology makes it virtually impossible for thieves to duplicate cards.
How Will EMV Work?
Unlike a magnetic stripe card, EMV cards have a chip in them that can send unique data with each transaction. The EMV chip transmits a variable algorithm with each transaction, making the data more secure than static data, which is what magnetic stripes offer. Only EMV-enabled terminals can read and decode EMV cards.
When Will EMV Go Into Effect?
Your customers are receiving new EMV-compliant credit cards right now, and all major credit card companies will have distributed EMV cards by Oct. 1. The U.S. is set to transition more than 1.2 billion payment cards this year.
Meanwhile, all retailers need to upgrade to an EMV-compliant terminal and payment processing software system in place by Oct. 1. The U.S. is estimated to transition more than 8 million point-of-sale (POS) terminals to meet EMV requirements.
Bonafide has partnered with AxiaMed to provide its DME clients with EMV-compliant customer payment transactions that are fast, efficient and secure. For more information, please contact Kristina Akerberg at (805) 906-1698.