Apple Pay And The EMV Required Update
If you plan on accepting credit card or debit card transactions in your business this year you should be fully aware of the pending October 2015 deadline to update your POS machines to EMV chip ready solutions or be prepared to pay the piper.
So what is happening in October? The major credit card companies are shifting the liability of fraudulent charges over to you the merchant unless you install EMV secure technology to accept payments through major card brands such as Visa and MasterCard.
EMV technology is not new, matter of fact merchants have been using it in both Europe and Canada for several years now. When the technology was first implemented fraudulent transaction rates on card present payments dropped substantially overnight due to the fact that the upgraded POS machine use a chip and pin program similar to how you would process a debit card transaction right now.
The new EMV cards that are being issued by banks and major card companies contain an embedded microchip that stores customer data. To complete a transaction the consumer would place the bank card into a slot located on the new updated POS machine and then use a pin number to complete the transaction. The new machines would not be reading the magnetic strip on the side but the embedded computer chip inside the new credit and debit cards.
These new cards contain the technology that would mitigate the security breaches does hit major retailers such as Target and Home Depot this past year . This is accomplished as the consumer data is not stored on the retailer’s system but on the chip embedded inside the card itself.
So if you as a merchant do not upgrade your POS machines to comply with the EMV chip card readers any liability for fraud will fall on you the merchant that has not upgraded your system. This differs to the current system where Banks and Card Brands absorb the fraud right now.
So how does Apple Pay come into the mix?
Apple Pay is the digital version of EMV, in fact the electronic EMV that operates in the Apple Pay system also uses secure tokenization of payment through the use of your iphone or Apple watch. Many banks have jumped on board with Apple Pay including Wells Fargo and Chase to provide digital versions of their credit and debit cards to be used in the Apple or even Google Wallet.
Apple Pay was launched at an exciting time in the payments industry coinciding with the EMV upgrade as POS machines have been created to accept both electronic payments via Apple Pay as well as the Chip and PIN system. Apple Pay also offers a tremendous convenience for individuals who always carry their phone but sometimes forget their wallets!
Velcro Pay is giving away free Apple Pay and EMV combo POS machines for merchants… To get your Apple Pay enabled device click the link below.