Explaining The Implications For Merchants Of EMV And The Liability Shift

The EMV liability shift is coming. Sounds ominous, but what does it really mean? And how can retailers and merchants determine the potential impact of the shift on their business? Like many issues in the payment card industry, there is confusion and misunderstanding. Through an FAQ format, we cover the basics and address some of the common misperceptions.

• What is EMV? EMV is a smart-chip technology for payment cards—EMV cards have an embedded microprocessor chip that creates a dynamic authentication code for each transaction. It can be used with a PIN or just with the cardholder's signature.
• Why the push for EMV? The primary benefit of using an EMV card is the prevention of counterfeit card-present fraud. If someone steals the data contained in the magnetic stripe of a payment card, that person can embed the stolen data in a different magnetic stripe, apply it to the back of a plastic card, and then use the counterfeit card to make a purchase in a store. Because