If you want to protect your business from credit card fraud you must use a certified EMV payment solution. Retailers who do not use EMV enabled card readers can be held liable to fraudulent transactions. This liability shift has been enforced since October 2015. Wireless retailers must use EMV certified point-of-sale systems to protect their business from fraudulent transactions.
The latest EMV technology has been widely used in Europe and Canada for years. EMV is an abbreviation for Europay, MasterCard and Visa, the companies that originally developed the internationally recognized more secure standard of payment processing. EMVco now manages this standard, it is a consortium that also includes American Express, Discover, JCB, amd China UnionPay.
EMV cards and EMV enabled smartphones store data on integrated circuits instead of magnetic stripes. The metallic square on the front of the card is a computer chip. During each transaction the EMV card chip creates a unique transaction code that cannot be used again. If a criminal stole the transaction code from a point-of-sale terminal and attempted to duplicate the chip-card it would get denied anywhere else.
The traditional magnetic-stripe cards had become too easy to duplicate. Information gathered from a point-of-sale terminal can be used to create counterfeit magnetic-stripe cards. Before the advent of EMV technology, criminals who managed to steal information gathered at card terminals created multitudes of counterfeit cards. The problem had increased significantly in the United States in recent years as other countries adopted the new EMV standards.
EMV technology is more secure, because counterfeit cards are more difficult to produce. When an EMV card is inserted into a card reader, dozens of pieces of information are exchanged between the card, the terminal and the acquiring bank or processor host. The terminal must perform many complex processing steps to successfully complete a transaction. In order to process these transactions your Wireless POS system must be certified to process the EMV encryption.
The best POS systems can also perform contactless transactions. EMV cards can transmit the same secure transaction information without being inserted into a terminal. Contactless chip-enabled card or smartphone can be read over a short distance. The encrypted data is transmitted over a radio frequency to the contactless payment device.
Wireless Standard was the first POS system in the wireless industry in the United States to get certified to process EMV chip-enabled cards.