What is EMV?
EMV is a new equipment standard for credit cards. EMV cards have an embedded microchip, that when combined with a signature or PIN, authenticate the card and improve identity verification. EMV, which stands for Europay, MasterCard, and Visa, was created by those card issuers to reduce the issuers’ costs of fraud in ‘Point of Sale’ transactions involving counterfeit cards.
To be compliant with the new standards, all physical card reader equipment, including mobile card readers, needs to be replaced with new hardware. This does not affect e-commerce transactions or software-only solutions like Flint.
Can Flint accept EMV Chip Cards?
Yes. You can use Flint to process any major credit or debit card with a chip, including Visa, MasterCard, American Express and Discover. Flint’s Virtual Swipe Technology works the same with chip cards as it does mag-swipe cards.
Do I need to upgrade my card reading hardware to comply with the EMV standard?
Yes. If you use a payment processing solution that requires hardware, you will need to upgrade your equipment. Flint does not require any external hardware because it uses the optical technology of the smartphone to scan credit cards. It is a simple mobile app download. For other providers, there are some important changes to their new EMV card readers.
What happens on October 1st?
Most credit and debit card issuers are in the process of sending new chip cards to card holders. Along with the EMV chip technology, these cards still include mag-stripes and 16-digit card numbers. Merchants are starting to upgrade their hardware. However, upgrading to EMV is completely voluntary so it will take years to replace all mag-stripe cards and readers. Full EMV adoption is not anticipated until 2018.
On October 1st, card issuers will officially shift liability for counterfeit chip card transactions (but not e-commerce or lost/stolen card transcations) onto merchants.
Is fraud liability shifting for Flint users?
There is no change in liability when using Flint to process payments. Flint transactions are treated as e-commerce, and thus not subject to the EMV liability shift.
Is Flint secure?
It is secure now and will continue to be after Oct 1.
All card transaction data will continue to be secure and PCI compliant when processed with Flint. Your customers are protected with Flint, and their card data will never be stored on your device.
How common is counterfeit EMV card fraud?
The impact of the liability shift on a merchant that doesn‘t use EMV hardware is dependent on the amount of counterfeit card fraud that is likely to occur when their customers pay. In most cases, service-oriented small businesses without a storefront are not a likely target for this kind of fraud. The vast majority of counterfeit card fraud occurs at large, high-velocity retail storefronts which sell merchandise that can easily be redeemed for cash on the black market.
Average Visa US Domestic Counterfeit Fraud