The way of doing commerce and retailing in today’s times is through the internet. More people and business owners are finding success on both ends in using online merchandising to do business. As a result, the credit card and debit card market has exploded. Checks and cash are on their way to being obsolete as the electronic method of payment becomes the preferred rather than the exception. However, as the electronic market takes over, a new set of problems comes to the surface. This is the problem of identity theft, fraud and internet scams. People are finding that their personal information is being stolen and used when they swipe their Mastercard, Discover or Visa. This makes it difficult to rely on the technology of online commerce. Enter the new technology of the EMV system.
The EMV chip technology comes as an answer to the security breach problems customers and merchants have been experiencing in the past. The name comes from Europay, Mastercard and Visa, the credit card companies who came together to provide protection by use of a microprocessor chip. This chip held all the data of a cardholder, and generally required the cardholder to provide a pin instead of signature, to validate a purchase or emv online order. The main purpose of the microprocessor chip is to prevent the possibility of fraudulent activity by way of credit cards and debit cards. The other thing that business owners need to be aware of is that if they don’t use the EMV system, they run the risk of bearing the burden of the chargeback costs of fraudulent transactions.
Merchants will find that doing business will be a lot easier and safer by converting to the EMV chip technology. EMV appears to be the best security process going on in the business world now. The merchant may find that he or she may have to spend a little more money upfront, getting the EMV system implemented and training the employees to use them, but in the long run, much money will be saved by the reduction of fraudulent transactions. This conversion should happen with brick and mortar businesses as well as online. Other countries have already been using the EMV system for years. The United States is now beginning to deploy this system throughout their business networks.
As to date, most banks have already made the switch to allow customers to complete an emv online order. After a while, the older, magnetic strip cards will become outdated, and perhaps even obsolete. It will become very risky to even try to use such a card, as the EMV system will not be able to verify it. The four major card issuers in the United States, Discover, American Express, Mastercard and Visa, have already made provisions for their merchants and processors to employ the EMV microchip technology. It becomes almost a financial necessity for all merchants to invest in the EMV chip technology before the imposition of a chip liability shift. This shift will automatically apply a penalty to those merchants who have not complied by this time. More information on this technology can be gained at the following website, https://www.bluepay.com/blog/emv-and-e-commerce-what-online-retailers-need-know/.