EMV: Merchant Migration Slower Than Anticipated

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Only 37% of U.S. merchant locations are fully equipped for EMV card acceptance, narrowly missing a projected 40% rate of deployment predicted by management consulting firm Strawhecker Group, according to research it published Wednesday.

The current study showed payment processor readiness, gateway readiness, and technical staff resource availability affected the speed of implementation most. The card networks set an Oct. 1, 2015 date for EMV adoption, after which non-compliant parties faced a shift in fraud liability.

Jared Drieling, business intelligence manager at TSG, anticipates a faster rate of implementation by merchants who delayed to avoid any changes to the payment process ahead of the 2015 holiday season.

“It appeared that some merchants delayed EMV migration completely until the holiday season ended to prevent friction and confusion at the checkout line,” he said in a Feb. 17 news release. “I suspect that many merchants that have delayed, especially merchants in higher risk categories, felt the impact of the liability shift last year and we’ll see them aggressively ramp up plans to migrate.”

TSG said it expects 50% of merchant locations to be able to accept EMV cards by June, and 90% in 2017.

TSG sampled 92 payments services providers that service almost 4 million merchants, or 50% of card transactions.

 

CardWorks Merchant Services is offering FREE upgrades to EMV equipment for all merchants new and old.  Reach out to your sales agent or our Merchant Support Team (merchantsupport@cardworks.com) for more information about becoming compliant today!

 

 

Source: PaymentSource


How Can Merchants Close the EMV-NFC Knowledge Gap?

 

 

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One of the more perplexing elements of the slow, long-awaited march to EMV-chip cards in the U.S. is the lack of awareness that still pervades among merchants and consumers alike.

At the same time, mobile wallets such as Apple Pay have had no trouble becoming household names despite having fairly low adoption.

Three months past the U.S. EMV liability shift — the soft deadline set by the card networks for EMV adoption — Scott Holt, a vice president at Ingenico in North America, sees a chance to finally shift consumers away from their old payment methods. The twist is that it won’t be by consumers’ choice.

By the end of 2016, much of the U.S. retail market will be compliant with EMV and mobile wallets, Holt said. Consumers will have no choice but to abandon magnetic stripe payments, but when they do it will open up the opportunities to choose something other than EMV’s chip-and-dip process, he said. “People will have to learn a new experience with EMV anyway.”

The migration to both Near Field Communication-based wallets and EMV will place pressure on floor-level personnel at retailers to educate consumers on the new technologies. In particular, cashiers are the key to a smooth transition to new payments technology, as Beatta McInerney, a business development manager of payments for point of sale technology company ScanSource POS and Barcode, explains in recent column for PaymentsSource.

Retailers must train cashiers to spot if a consumer has an EMV chip even if the merchant is not accepting EMV cards at this point, McInerney said. This gives retailers an opportunity to teach the process at a more measured pace.

“Consumer experience is largely dependent on the education of retailers,” Holt said, adding that includes the skills to recognize and help consumers who are confused about how the new terminals work. Placing the right prompts into point of sale software is also important, he said.

The delays aside, Ingenico reports the EMV migration in the U.S. is progressing similar to other countries, adding it’s tracking the migration to tailor the education it will provide to merchants over the course of the next year.

Read the rest of this article at PAYMENTSSOURCE.COM.


In a First for Debit Networks, Shazam Adds a Mobile Feature to Shut off Lost Or Stolen Cards

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In the wake of the arrival of EMV chip cards and ahead of the holiday shopping rush, the Shazam debit network has launched a mobile feature that lets cardholders disable their debit cards should they be lost or stolen.

While networks like Discover Financial Services have advertised a similar feature for credit cards, the new Shazam feature, which is part of its Bolts mobile app, is the first of its kind for a debit network, a spokesman for the network tells Digital Transactions News. “You just click a button and [the card] is off,” he says. “It’s attractive for consumers and financial institutions because that’s less fraud for them.”

Since the service went live at the end of September, it has blocked some 600 Shazam cards. As the holiday-shopping season approaches, the network expects many more will be switched off as cardholders lose their cards in the shopping frenzy. “As the volume goes higher seasonally, it stands to reason there’s more potential” for lost-and-stolen fraud, says the spokesman.

The feature, whose formal name is Bolts Transaction Control, is rolling out to the network’s 1,300 member financial institutions and is one of three services available for Bolts, a mobile app Johnston, Iowa-based Shazam launched in January 2013. The other two are transaction alerts and peer-to-peer payments, a service Shazam added this summer.

So far, about half of the Shazam members have integrated Bolts and have added Transaction Control. Those banks account for some 1.3 million debit cards out of the network’s total of 4.9 million active Shazam-bugged cards. Of these, just over half a million are now active on the new service.

For the rest of this story by John Stewart, head to DIGITAL TRANSACTIONS.


TSYS and Ingenico Group to Offer New Semi-Integrated EMV Solution

 

 

TSYS TSS, -1.12% a leading global payments provider, and Ingenico Group , a global leader in seamless payments, today announced a new semi-integrated solution to simplify the EMV [®] certification process. TSYS is the first processor to Class A certify Ingenico Group’s new offering, which is designed to enable partners with the ability to easily build and deploy secure EMV and NFC solutions.

The combined TSYS and Ingenico Group offering provides Value-Added Resellers (VARs) and Integrated Software Vendors (ISVs) with a simple and secure pathway to begin enabling EMV payments. This easy-to-implement solution empowers VARs and ISVs to focus on developing their core products, while offering them a secure method for accepting payments, including magnetic stripe, EMV and NFC contactless payments.

Using a semi-integrated approach, communications between the PIN pad and point-of-sale (POS) system are limited to non-sensitive exchanges, preventing card data from entering the POS. By taking the POS out of the payment flow process, not only are EMV certification and PCI compliance simplified, but overall costs and time required for EMV implementation are reduced as well. Fully certified through all major card brands, this new TSYS-certified solution also has the ability to process with TSYS Guardian Encryption [SM] , ensuring payments are both reliable and secure.

 

For the rest of this article, head to MARKETWATCH.

 

For any further questions about the exciting advances with Ingenico products, please contact CardWorks merchant support:

(866) 210-4625 X1

merchantsupport@cardworks.com


EMV Shift : Real Life “Mad Men” Take on EMV Marketing

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EMV Shift : Real Life “Mad Men” Take on EMV Marketing

One of the more difficult challenges of the U.S. EMV conversion is getting the word out, especially given the urgency of the October deadline the card networks set for a fraud liability shift.

Some companies are starting to treat this marketing challenge as an opportunity, making their advertising more about the shift to EMV security than about their own products. ShopKeep, a mobile point of sale provider, is running an advertising campaign that cuts straight to the chase.

One ad states bluntly: “The card companies will hold you liable for fraud if you don’t have EMV technology — liable for their cards. That’s going to make you mad.”

Partners and Napier New York produced the ShopKeep ad campaign, which features two television spots and other digital content. One of the TV spots is a branding message around ShopKeep tied to the need to migrate to EMV, the other general messaging around EMV, liability and ShopKeep’s role.

“The liability shift is coming, and among our target market of small to medium sized businesses there’s not a lot of awareness,” said Brian Zang, senior vice president of sales and marketing at ShopKeep. “They mostly have their heads down running their businesses.”

“It starts with consumers. Consumers don’t necessarily know what EMV is,” Zang said. “If you’ve traveled that means ‘OK, my card has a chip on it now.’ But I don’t think that people understand what it means for the larger payment industry.”

CardWorks Acquiring – Merchant Services continues to work with our industry partners to provide merchants with affordable, easy-to-implement EMV solutions with the industry’s best security capabilities. To ensure your equipment is EMV compliant, contact CardWorks Acquiring Merchant Support today at (866) 210-4625 X1 or via email at merchantsupport@cardworks.com.

To read the rest of this story, visit PAYMENT SOURCE.


EMV Shift : Real Life "Mad Men" Take on EMV Marketing

EMV PICTURE

EMV Shift : Real Life “Mad Men” Take on EMV Marketing

One of the more difficult challenges of the U.S. EMV conversion is getting the word out, especially given the urgency of the October deadline the card networks set for a fraud liability shift.

Some companies are starting to treat this marketing challenge as an opportunity, making their advertising more about the shift to EMV security than about their own products. ShopKeep, a mobile point of sale provider, is running an advertising campaign that cuts straight to the chase.

One ad states bluntly: “The card companies will hold you liable for fraud if you don’t have EMV technology — liable for their cards. That’s going to make you mad.”

Partners and Napier New York produced the ShopKeep ad campaign, which features two television spots and other digital content. One of the TV spots is a branding message around ShopKeep tied to the need to migrate to EMV, the other general messaging around EMV, liability and ShopKeep’s role.

“The liability shift is coming, and among our target market of small to medium sized businesses there’s not a lot of awareness,” said Brian Zang, senior vice president of sales and marketing at ShopKeep. “They mostly have their heads down running their businesses.”

“It starts with consumers. Consumers don’t necessarily know what EMV is,” Zang said. “If you’ve traveled that means ‘OK, my card has a chip on it now.’ But I don’t think that people understand what it means for the larger payment industry.”

CardWorks Acquiring – Merchant Services continues to work with our industry partners to provide merchants with affordable, easy-to-implement EMV solutions with the industry’s best security capabilities. To ensure your equipment is EMV compliant, contact CardWorks Acquiring Merchant Support today at (866) 210-4625 X1 or via email at merchantsupport@cardworks.com.

To read the rest of this story, visit PAYMENT SOURCE.


EMV: Chase Begins Issuing EMV Debit Cards

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Banking giant JP Morgan Chase & Co. has begun issuing EMV debit cards, with plans to convert its entire debit card portfolio of 34 million cards to chip by the end of 2016, Chase announced Tuesday. Chase began testing chip-enabled debit card issuance in Arizona and Illinois two months ago, a Chase spokesman tells Digital Transactions News. Chase expects 70% of its debit cards to have chips by year’s end. The spokesman would not say how much the EMV debit conversion will cost Chase. One estimate is that a chip card may cost between $3 and $7 to issue. On the low end, the conversion thus might cost $102 million.

Chase debit card holders with lost, stolen, damaged, or expired cards will receive the chip versions first, as will consumers opening new accounts. “Our mass reissuance will occur in the next 12 months,” the spokesman says. The plans also call for converting Chase’s Liquid prepaid cards to chip.

EMV is meant to better secure point-of-sale transactions by migrating credit and debit cards from magnetic-stripe payments to chip ones. Issuers are expected to dramatically increase the number of chip-enabled credit and debit cards over the next several months in anticipation of the payment card networks’ Oct. 1 liability shifts that will place the onus for fraudulent transactions at the point of sale on the party, whether it’s the merchant or acquirer, least prepared for an EMV transaction.

CardWorks Acquiring – Merchant Services continues to work with our industry partners to provide merchants with affordable, easy-to-implement EMV solutions with the industry’s best security capabilities. To ensure your equipment is EMV compliant, contact CardWorks Acquiring Merchant Support today at (866) 210-4625 X1 or via email at merchantsupport@cardworks.com.

Want to read the rest of this story? Check out Digital Transactions.