Wondering what all the fuss is about with EMV-certified terminals? Since the liability shift both providers and businesses have scrambled to obtain compliant equipment.
Designed to decrease fraud, the EMV terminal reads the unique, one-time code generated when a chip card is inserted. This is a distinct process that requires a separate slot for inserting a chip card compared to the component used for swiping magstripe cards.
Ideally, it’s customer facing and can detect when a chip card is swiped, prompting the customer to insert the card instead. Proper EMV processing protects businesses from bank-initiated chargebacks.
Simple enough, right? It’s actually not. Every terminal must go through extensive testing to become EMV certified. Let's get these levels of EMV certification explained.
There are three levels of EMV certification:
EMVCo, which is composed of six member organizations (Visa, MasterCard, Discover, Amex, JCB and UnionPay), manages and defines the specifications for each level and ultimately certifies equipment at just levels 1 and 2. To earn level 3 EMV certification, the equipment must pass tests with each individual card brand.
If your business needs to use a payment application specific to your industry, level 3 certification gets a lot more complicated.
Any non-generic, custom-payment application, such as a point-of-sale system, is held to the same testing standards as a generic payment application for EMV certification. The testing falls on the developer of the payment application, but can significantly hold up businesses that need an EMV certified terminal.
Wonder why so many businesses still swipe chip cards? It’s because companies are currently waiting up to one year for level 3 EMV certification.
Palms sweating? Mind racing? Don’t stress. Even though EMV compliance is still a dream for most businesses, we have solutions available to you right now.
No matter your business needs, we have an EMV certified solution:
Don’t go another day without an EMV certified terminal simply because your provider or payment application isn’t EMV certified. Take advantage of the quick solutions PayJunction offers and start accepting EMV today.
Has your business struggled to accept EMV chip cards? Were you unaware of these EMV certification details? Contribute to the discussion below, we'd love to hear from you!
Editor's Note: This post was originally published in November 2016 and has been updated for comprehensiveness and accuracy.