By October 2015, magnetic strips will be out and computer chips will be in. Credit cards will look the same, but will have an embedded chip which will help reduce fraud (in addition to a magnetic strip).
As a merchant, you should be upgrading your terminal to an EMV compatible terminal. While you are at it, you should upgrade to an ENV terminal that is also NFC compatible. EMV stands for Europay, MasterCard and Visa. That’s a global standard for cards equipped with computer chips and the technology used to authenticate chip-card transactions.
You may notice that your latest credit cards have a little gold rectangle on them. That’s your embedded computer chips. Newer credit card terminals will no longer read your magnetic stripe. They will read your computer chip.
Thieves can no longer hack into computer terminals, obtain lists of credit card numbers along with expiration dates. Every time your credit card number is used, your chip is updated making it impossible for someone who has your number to create a new credit card. Magnetic cards were very easy to duplicate. New credit cards are nearly impossible to duplicate.
Consumers will be “dipping” their credit cards instead of swiping their credit cards. The process will take slightly longer than swiping a credit card since the terminal must process the information on your chip.
For consumers, nothing will change that much.
Merchants will need to upgrade their credit card terminals by October 2015 or be responsible for fraudulent charges. You should call your credit card processor and find out how the new rules will affect your business.
To get a better understanding of what EMV means to you, go to:
Also, you may want to go to:
Chips promise more security for credit cards, but signature still required
As for NFC, that’s Near Field Communications.
By upgrading your credit card terminals to both ENV and NFC, you will also be able to accept credit cards stored on devices such as the Apple iPhone just by passing your device close to the terminal.
Read more about NFC devices at: