EMV FAQs for governments
What's the risk of NOT having EMV Chip ready devices for card present payments?
At risk for fraudulent payments via cloned cards. (Credit or debit cards copied from skimming devices used for the purpose of identity theft.)
Increased risk of payment chargebacks.
Magstripe readers increases cardholder risk for identity theft at offices that are not EMV Chip compliant.
Increased vulnerability to higher scale data breach.
How can EMV Chip devices minimize risk of problematic transactions?
Chip Technology offers layers of increased card data security to assist merchants in the fight against fraud chargebacks and other winnable disputes.
Visa reported counterfeit fraud from retailers who have chip-enabled payment terminals declined by 66% in June 2017 compared to June of 2015.
If merchant is using an EMV-enabled point of sale terminal, the liability of fraud shifts back to the issuing bank, thereby relieving acquirer and their merchant of disputing chargebacks.
How much can chargebacks disrupt accounting workflow for Tax Commissioner?
Amount in question is debited from bank account for investigation. This adversely effects the following:
- General Ledger
Accounting personnel removed from current days task to pursue following actions:
- Chargeback dispute
- Waiting period
Result of Fraud will require additional actions to be taken by Accounting:
- Cancel Tag and update billing software
- Bad Check Reversal
Why are chip transactions safer than swipes?
Chip cards work only with PCI (Payment Card Industry) certified devices that are compliant with EMV Chip-and PIN framework. Whenever a chip card is used it creates a unique code that change with every transaction, making it difficult for ID Theft. Additionally, no personal data is stored on the chip. Magnetic strip stores primary account numbers, and cardholder's personal info.