One of the main drivers for EMV is the need to reduce losses from payment fraud. It is much harder to skim cardholder data from a Chip-enabled card compared to a mag-stripe card. In markets that have adopted EMV, fraud statistics have reduced dramatically. However, while credit and debit cards in mature EMV markets still bear the mag-stripe, the US is experiencing fraud transferring from those regions – fraudsters can clone mag-stripe cards abroad but they can’t use them in chip & PIN environments. Instead, they use them to steal cash where mag-stripe is still accepted.
Another main driver is interoperability and unifying cross-border card use. Using mag-stripe only cards in mature EMV regions has proved a major problem for many US travellers, with some merchants reportedly refusing to accept these cards as payment. EMV Chip-enabled credit cards offered to US citizens by numerous financial institutions have emerged as one solution, though many of these are only Chip and signature and come with notable fees.
A third and important benefit is that EMV is paving the way for future payment innovations. This is particularly apparent in the case of contactless payments, including mobile contactless, which is only possible through EMV-enabled Chips embedded in the card or mobile device. In the case of mobile point-of-sale, hardware manufacturers are increasingly turning away from mag-stripe and issuing devices that make use of the increased security and interoperability of EMV.
The reality is that the payments industry and consumers stand to be benefit considerably from the global adoption of EMV. However, ‘global’ is the key and as long as there are regions left behind, the full benefits cannot be realised. There are some tough technology hurdles involved but there are also many tried and tested processes and approaches already available. With a unified and joined up approach, the industry can deliver on the EMV promise and prepare for the next wave in the payment evolution.
About Jeremy GumbleyJeremy became CTO and technical director at CreditCall in 2001, having spearheaded the company’s technical development since 1999. He is a veteran of the payments industry, having driven product and technology development roadmaps to accommodate EMV migration programs in the UK, Europe, Africa and the Middle East as well as the US and Canada. As CTO, he is responsible for the design, development and implementation of the company’s market leading card payment solutions and portfolio of EMV Level 2 Kernels.
COMPANY PROFILE
CreditCall is an award-winning payment services provider with a global reputation for enabling card acceptance in complex and diverse terminal environments. Founded in 1997, the company has a proven track record in creating innovative, reliable and secure card payment solutions that lie at the heart of the payments ecosystem. CreditCall’s product suite covers mobile payments, ecommerce, EMV migration, and unattended payment gateway services.
The company leads the industry in EMV compliant mobile point-of-sale. Its mPOS solution, CardEase Mobile, was the first to allow businesses ‘on the go’ to accept chip & PIN cards via smartphones and tablets. In addition, CreditCall revolutionized EMV with Cloud based EMV transaction processing and offers chip-based EMV Level 1 and EMV Level 2 Kernel software which is used globally in contact and contactless environments such as ATMs, mPOS, card readers, PIN pads and other devices.
Companies across Europe, North and South America, South Africa and Asia-Pacific deploy CreditCall’s solutions, with clients including Wayne (a GE Company), Atos, Toyota, DHL, Westfield, Hilton Hotels & Resorts and Elavon.
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