Credit card companies in the United States have begun issuing cards with a new technology known as “Europay, MasterCard and Visa,” or EMV. The new cards will have a small computer chip that makes it difficult to counterfeit the card. Anyone who has received a new credit card in the past month may have a card with the new technology. Even some debit card issuers are providing customers with EMV-equipped cards. Here are some facts that you need to know about EMV chip-equipped cards.
Unique Code Makes it Harder to Create Counterfeit Cards
The main benefit of EMV chips is that they make it harder for thieves to create counterfeit cards. Counterfeit cards account for 37 percent of all credit card fraud in the United States, according to interview data collected and reported by Aite group. With current credit cards, criminals can create fake cards through data breaches, such as those suffered by Target and Home Depot, or from skimming operations. Magnetic strips on today’s credit cards contain sensitive data that remains the same each time the card is used. However, an EMV card creates a unique one-time code that is not usable again. If someone attempts to use information obtained from the chip, the transaction will be denied.
More Liability on Merchants
As of October 1, 2015, the liability for fraudulent use shifts from the card issuer to merchants who have not switched card-reader equipment to accept EMV chip cards. Prior to the implementation of EMV technology, the payment processor or card issuer were liable for the transaction, depending on the terms and conditions of the card.
May Not Protect Against Online Use
One area where EMV chips may not prevent fraud is through online purchases. Unfortunately, an online purchase does not require a credit card to be swiped. Instead, a user can simply enter the card number, expiration date and the security code on the back of the card to make the purchase.
EMV Chip Cards Will Work in All Card Processors
A merchant who has not switched from the traditional card processor to one that reads EMV chips will still be able to accept cards with the new technology. Also, EMV card readers can still read cards without EMV technology. However, it’s in the merchant’s best interest to meet the new technology requirements.
Contact Khonsari Law Group for Criminal Defense Attorneys
If you are involved in or connected to a credit card breach, contact The Khonsari Law Group today to learn what rights you may have.