The security of payment cards and card-based transactions is becoming increasingly important. This has resulted in the implementation of EMV (Europay, Mastercard, and Visa) technology, technology that uses chip cards to reduce the risk of fraud and theft resulting from card-based transactions. EMV technology is being implemented across the world, and merchants must consider upgrading their systems to comply with industry standards and remain competitive.
What’s EMV Technology?
In Australia, EMV technology is now the standard for card-based transactions. EMV stands for Europay, Mastercard, and Visa, which are the three companies that created this technology. An EMV-enabled card, also known as a chip card, contains an embedded microchip that stores information about a cardholder’s identity and account. This technology is designed to protect the customer from fraud and theft that can occur with traditional magnetic strip cards.
When a customer inserts an EMV card into an EFTPOS machine, for example, the microchip on the card is read by the machine and then creates a unique code for the transaction. This code then has to be approved by the card issuer before the transaction is completed. This makes it much harder for fraudsters to access customer account information, as they would need to both steal a card and correctly guess or crack the code to make a fraudulent purchase.
In addition, EMV technology also provides merchants with a greater level of protection from chargebacks. This is because the unique code created by the card reader only works with that particular transaction, meaning that it cannot be used for any other purchases. Overall, it’s easier for merchants to prove that the card was indeed used by the customer, which makes it much harder for customers to reverse their transactions with claims of fraud or dispute the charges.
Overall, EMV technology is a great solution for merchants looking to protect their businesses from fraud and chargebacks. With the added layer of security and convenience, the switch to EMV technology is beneficial for all involved. Additionally, merchants can also benefit from lower fees and liability protection with the switch to EMV technology. This means that merchants who upgrade their systems to accept EMV payments will be able to better protect their businesses from fraudulent transactions and chargebacks. Customers, too, will benefit from the added security and convenience of EMV payments. All in all, EMV technology is beneficial to all parties.
How to Start Using EMV Technology in Australia
Fortunately, transitioning to EMV technology in Australia is relatively straightforward. Merchants must first ensure that their point-of-sale terminals are compatible with EMV technology. Thankfully, the rise of EFTPOS machines means that many merchants have already made the switch. It’s also important to ensure compliance with the Payment Card Industry Data Security Standard (PCI DSS), as this will help protect customer data.
What are EFTPOS machines? EFTPOS stands for Electronic Funds Transfer at Point of Sale. They are payment card terminals that enable customers to pay for goods and services with credit and debit cards. EFTPOS machines come in a variety of models, including traditional countertop terminals, mobile phone and tablet-based terminals, and even contactless payments.
The switch to EMV technology is important for merchants because it allows them to accept the latest card payment technologies, such as contactless transactions and Apple Pay. EMV also provides a layer of security for merchants and their customers, as it helps to protect cardholders against fraud. EMV technology requires that data transmitted between the cardholder and merchant be encrypted, making it much more difficult for hackers to obtain sensitive customer data.
If you didn’t know before, you now know why all merchants need to make the switch to EMV!