The nationwide shift to EMV is well underway. We have you covered with the facts and what you need to know about the EMV card technology.
EMV -- which stands for Europay, MasterCard and Visa -- is a global standard for cards equipped with computer chips and the technology used to authenticate chip-card transactions. In the wake of numerous large-scale data breaches and increasing rates of counterfeit card fraud, U.S. card issuers are migrating to this new technology to protect consumers and reduce the costs of fraud.
For merchants and financial institutions, the switch to EMV means adding new in-store technology and internal processing systems, and complying with new liability rules. For consumers, it means activating new cards and learning new payment processes.
Most of all, it means greater protection against fraud.
How does EMV technology prevent fraud?
EMV cards improve payment security, making it more difficult for fraudsters to successfully counterfeit cards. Unlike magnetic-stripe cards, every time an EMV card is used for payment, the card chip creates a unique transaction code that cannot be used again. EMV will not stop “card-not-present” fraudulent transactions such as online or phone purchases.
When will HAPO offer EMV cards?
HAPO now offers EMV debit and credit cards.
How do I request a HAPO EMV debit or credit card?
Simply contact HAPO or stop by any of our financial centers. We can instant issue an EMV debit or credit card.
How do I use my EMV card?
EMV cards are inserted into card readers similar to how you use your card at an ATM machine. The card will stay in the reader for the entire transaction and eject when the transaction is complete.
What if a merchant does not accept EMV cards?
HAPO’s EMV cards will be issued with the magnetic-stripe and the EMV chip. This will allow you to swipe your card at any merchant whose card readers are not compatible with EMV technology.
Once I order an EMV debit or credit card, can I still use my old card while I wait for my new card in the mail?
Yes, if the card number is the same. Once the new card is activated the existing card will no longer work. Shred your old card once your new card is activated.
Do they get a new number or is it the same number?
The number would remain the same.
Can the member get the custom image still?
Yes, we offer custom images on most of our debit and credit cards.
What is the Liability Shift or the October Deadline about?
Liability shift October 1, 2015 USA VISA
In store counterfeit fraud liability will shift to the party- either the issuing financial institution or the merchant that has not adopted chip technology. EMV liability does not apply to card-not-present transactions, or lost and stolen fraud. In these cases, the liability remains subject to existing liability and chargeback rules.
What does this mean for a consumer?
Same as today, you will contact your financial institution if there is fraud/suspected fraud on your account. HAPO will process the fraud and work with the member to ensure the proper paperwork is filled out and filed with the appropriate parties.
What does this mean for merchants?
- Magnetic-stripe cards, swiped at a magnetic-stripe terminal and the transaction is counterfeit: The merchant is generally not liable.
- Chip card issued by HAPO used at a tradition magnetic-stripe terminal and the purchase is counterfeit: The merchant holds liability because the issuer has the chip technology to make transactions more secure.
- Chip card used at a chip enabled terminal and the transaction is counterfeit: the merchant is not typically liable and the issuer will bear the responsibility of counterfeit fraud.
*When both the issuer and merchant adopt chip technology in-store counterfeit fraud is greatly reduced.
Exceptions to the rule
Fuel dispensers and ATM transactions will not be liable under this rule until October 2017.
Questions? Contact us at 509-943-5676 and let us answer any questions you may have.