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EMV® is a global standard for credit and debit payment cards based on chip card technology, which gets its name from the credit card companies that developed it – Europay, MasterCard, and Visa. The standard covers the processing of credit and debit card payments using a card that contains a microprocessor chip.1
These transactions are often referred to as "Chip and PIN" because PIN (Personal Identification Number) entry is required to verify the customer is the genuine cardholder. This is a simplification since the EMV® specifications include other cardholder verification methods as well.1
Unlike magnetic stripe transactions, where typically only the card's track 2 data containing the card number and expiry date is processed, every chip card transaction contain dozens of pieces of information to be exchanged between the card, the terminal and the acquiring bank or processors host.
This requires the terminal to perform many stages of complex processing, including cryptographic authentication, to successfully complete a transaction. This means that adding support for EMV® to existing payment applications can be a daunting task. For more information on the main processing steps required in an EMV® transaction, please review this diagram showing a typical EMV Transaction Flow.1
On October 1, 2015, banks are shifting the liability for processing fraudulent charges in physical stores. The purpose of this change is to encourage the wider adoption of Chip and Pin cards, also known as EMV®.
With this liability shift, the party responsible for processing the payment without using a pin-and-chip transaction is financially liable for any card-present fraud losses (i.e., either the card issuer or the merchant) .
When transactions are processed using the pin-and-chip technology, any liability for counterfeit fraud continues to follow current Visa/MasterCard/AmEx policies.
You are still able to process credit card payments with a Magnetic Stripe Reader (card swipe) as you do today, but you are liable for fraudulent transaction losses.
Although Stone Edge Order Manager does not have internal hardware support for EMV® devices, it is possible to use an EMV® device to process the credit or debit transaction and manually record the payment in Stone Edge Order Manager.
The steps vary slightly, depending on the version of the program. Select the appropriate link below for complete instructions specific to your version of Stone Edge Order Manager.
1 Excerpt taken from Level2Kernel
Created: 4/7/15
Revised: 7/2/15
Published: 04/14/16