What is EMV?
EMV stands for Europay, MasterCard and Visa. It is a global standard for cards equipped with computer chips and the technology used to authenticate chip card transactions.
Why are financial institutions changing to EMV chip cards?
EMV is already the payment standard in every market except the United States, making the switch to EMV in the United States long overdue. With numerous data breaches and increasing rate of counterfeit card fraud, issuers are migrating to this new technology to protect consumers and reduce the costs of fraud. In addition, Visa has announced upcoming liability shifts for card transactions based on this standard.
What is the benefit of EMV?
The biggest benefit of EMV is the reduction in card fraud resulting from counterfeit, lost or stolen cards. EMV cards store payment information on a secure chip rather than on a magnetic stripe. Unlike a magnetic stripe, the EMV chip cannot be reproduced. Every time an EMV transaction is used for payment the chip creates a secure unique transaction code that cannot be used again.
How are Chip Transactions different?
Instead of a merchant swiping a card through a terminal, the consumer retains possession of the card, inserting it themselves in the EMV slot or tap-ping it on the terminal rather than swiping it through a magnetic reader. If you insert the card, it stays in the terminal until you are instructed to re-move it.
What if the merchant doesn't accept EMV?
You are still able to “swipe” your card to complete the payment in person. If you have an EMV card and the merchant doesn't offer the capability to use the EMV chip, the liability of fraudulent activity falls to the merchant.
When will Alabama One Credit Union members be receiving an updated EMV chip card?
If you have a credit card with Alabama One Credit Union member will be receiving reissued EMV Visa Rewards credit card starting in May containing chips. Any new Visa Rewards credit card issued will have the EMV chip. In April Alabama One will start reissuing Alabama One VISA debit cards and the process will be completed by the end of 2017.
If I don’t have an EMV chip card yet will my card stop working?
Your existing magnetic stripe cards will continue to work.