Cartoon illustrations of an EMV Chip Card reader and EMV Credit Card

The EMV Files: A Conversation with Chip and Terminal

Cartoon illustrations of an EMV Chip Card reader and EMV Credit Card

Last week we introduced Chip and Terminal, who have a lot to say about EMV, mainly because they are the main components in EMV technology. So we were lucky enough to be able to book a slot on their busy schedule this fall season to interview them and ask them a few questions. Personally, we think they’d be great on Bravo, but they might have competition with a real housewife or two.

COCARD: Hi Chip. Hi Terminal. We’re so glad that we could ask you two a few questions about EMV. Really, we’re honored. Could you just start by telling us a little bit about yourselves?

Chip: Sure, well I’m Chip, and I’m the small chip that’s embedded in credit cards with EMV technology. Banks have already started transitioning to cards including yours truly, and plan on having all cards in the US utilizing EMV technology within five years.

Terminal: I’m Terminal, and all cards containing chips, will be dipped into terminals to be read. I like to say that I give new meaning to dipping the chip. I provide a one-time code to authenticate the card. Because of this, your data is protected, preventing a person from stealing a code that is only good for one transaction.

COCARD: So when did you first realize that you worked so well together, that you were a great team?

Terminal: I’ll take this one Chip. We’ve had a couple of countries really benefit from EMV technology. There’s the UK, which reduced fraud by more than half between 2004 and 2013 upon implementing EMV cards. Then there’s Canada, eh, that started the EMV roll-out in 2003 and reported fraud of $29.5 million (CAD), down 79% from 2009, which was $142 million (CAD). So I would say that it’s taken some time to see the effects, but in the past few years, we’ve really seen the impact that EMV cards have had in reducing fraud for many countries around the world.

COCARD: EMV is new for many business owners. So I’m sure you understand how such a change might make people anxious. What would you say to assuage the fears of business owners everywhere?

Chip: Well, first the sky is not falling. It might seem like it, but it’s not. The proof is that it’s already been successful in other places, and the US is simply one of the few developed nations that has not adopted this technology. EMV, through its authentication process, is really what makes these cards, our cards, more secure. So they are a safe and secure way to pay for things. We think that any business owner can appreciate the feeling of comfort that security brings.  The big thing for business owners to remember is that banks have a five year plan and that only 21% of US cards will have the embedded chip by the October 1st liability shift..

COCARD: Anything else you’d like business owners out there to know?

Terminal: We just want you all to stay informed. Keep learning. The more you know, we think the less you’ll feel out of your element with something that can benefit your business.

COCARD: Thanks Chip. Thanks Terminal. You were both great. We appreciate that you were able to take time out of your busy schedules—you two are in high demand—to spend a few minutes with us at COCARD. Have a great day.

Chip: You too.

Terminal: Yeah, thanks COCARD.

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Salvador, IT Technician & Customer Support

Meet a member of YOUR COCARD support team, Salvador

Salvador, IT Technician & Customer SupportSalvador was born in San Bernardino, CA and raised in Salt Lake City, UT. He now makes his home in Duluth, GA with his wife, Nelly and daughter Evelyn. Salvador plays soccer, hikes and loves taking pictures (mostly of Evelyn).

He is a great cook and thankfully likes to eat what he cooks!

When I asked Salvador if he could meet anyone in the world who would it be and why he responded: myself, it would be very interesting to see me through someone else’s eyes.

Around the office Salvador is known for his relentless testing abilities, we like to think of this as his super power. If we have new technology or equipment we are beta testing we want Salvador to do the testing so that we can repair, replace or upgrade before our customers ever use the technology or equipment. He really is a super hero!

Call our support team and ask for Salvador, he is ready to support your POS and your merchant account with one call.

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Don’t Get SLAMMED!

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Dictionary

slam
noun ˈslam

Definition of SLAM
1
:   switching business owners from their current merchant services provider to another service provider without the business owners knowledge or authorization.  

Examples of SLAM

“He/she called for software support and was slammed by another provider”

Don’t be slammed

To Learn More About SLAM

 Call COCARD at 800-317-1819 or email support@cocard.info

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emv

The Truth About EMV!

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True.  Bats see just fine, and in spite of the idiom “blind as a bat”, bats really have no reason to serve as the benchmark for people with less than perfect eyesight.

Popular myths aside, fall is indeed upon us, which means that the start date of October 1st for the liability shift is near.  Are you prepared?

To test your EMV preparedness, see if you can determine whether each statement is true or false.

There really is no proof that EMV is a safer way to protect data.

False, false, and false.  Let’s look at two case studies.  Since introducing EMV technology in 2004, the United Kingdom reported 62% less fraud in 2013.  Canada has also reduced fraud losses to $29.5 million since transitioning to EMV technology.  Fraud in Canada is down 79% from losses in 2009 ($142 million).  With EMV technology responsible for the significant decrease in fraud in the UK and Canada, the technology aims to also decrease fraud in the United States as well, which currently accounts for nearly half of fraud worldwide.

All businesses—small and large—should be EMV-compliant.

True.  No business is too small to adopt EMV technology.  While it might be assumed that businesses with larger sales should adopt this technology, small businesses should also be sure to protect their sales as well.  Leave it to a pesky fraudster to think ahead and target a small business because the merchant assumed that fraudsters only targeted larger companies.  Prevent being caught off guard by being one step ahead of those who want to steal from you.

Adopting EMV technology is expensive.

For the business owner that thinks long term, false.  The average cost of an EMV terminal is between $400 and $700.  The average bill on a fraudulent card is $399.  You do the math.  While one fraudulent transaction probably won’t destroy you, starting October 1st, you, and not the associated bank, will be responsible for repaying losses resulting from fraud if your business is NOT EMV compliant.  You will also be penalized for the fraud that could have been avoided by installing an EMV card terminal.  When you add it all up, $400 to $700 is a small investment compared to the possible cost of not adopting the technology.  What’s more, card processors such as COCARD often discount card readers.  So call us today, and we will work within your budget.

In addition to business owners, employees should also be trained on how to properly use EMV technology.

True.  While you are schooling yourself on the ABC’s of EMV, don’t leave your employees in the dark.  Whether through workshops, a training program, or printed manuals, employees should understand how card terminals work for both themselves and customers who need assistance.  COCARD can work with you to develop a training program that’s right for your company.

So how did you do?  Did you get the right answers?  Regardless, this information will be useful as your company prepares for the coming liability shift and transition to EMV.  With foresight, you can protect your company from fraud and ensure, to the best of your ability, an environment that maximizes both security and profits.  There’s nothing batty about it, EMV we mean.

 

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EMV FAQs

AMX-CHASE-B-W-1024x992Watch out—the future has arrived. And they call it EMV. As the target date for businesses to accept EMV payment cards draws near, make sure your business is ready to transition seamlessly from magnetic stripe cards to EMV. October 1st is upon us. Are you ready?

This list of FAQs will help you answer lingering questions and stay abreast of new developments with EMV technology.

What does EMV stand for?

It is an acronym for its developers Europay, Mastercard and Visa.

What’s the main difference between the cards we use now and EMV cards?

Magnetic stripe cards are the cards currently used in the United States and have a magnetic strip on the back. These cards are swiped through a card reader and contain static financial information that can be easily duplicated by card readers. EMV cards, on the other hand, contain a microchip that produces a new code with each transaction, preventing fraudsters from gaining access to sensitive data on the card. EMV cards are therefore more secure than magnetic stripe cards, and are responsible for a worldwide decrease in fraud.

How will switching to EMV directly benefit my business?

Great question. EMV will benefit your business threefold. First, your risk of chargebacks based on fraudulent transactions is greatly reduced. Whereas banks bore the brunt of the financial weight for fraud in the past, companies that have not adopted EMV technology will now be held accountable starting October 1st, when the liability shift starts. Adopting EMV technology will protect your business from costs associated with fraud. Second, as technology evolves faster than you can say Darwin, EMV is simply the beginning. Most of the hardware that accepts EMV will also allow your business to accept payment innovations such as mobile apps (i.e. mobile couponing and loyalty programs) and contactless payments. Third, you will be able to accept payment from visitors from other countries. Much of the world has already adopted this technology and no longer uses magnetic stripe cards. So prepare your business to increase profits by switching to a payment technology that more people can use.

I’ve been hearing the term “liability shift” a lot lately. What exactly is it?

It is when liability for card fraud switches from banking institutions to merchants. On October 1, 2015, businesses that aren’t updated to accept EMV cards will be held responsible for card swiped transactions on EMV capable cards that are found to be fraudulent. And penalties can be costly, particularly for small businesses. However, if your business is EMV-compatible, you will not be held accountable for fraudulent transactions.

As a small business owner, every penny counts. How much will it cost me to install an EMV-capable terminal?

EMV card readers cost between $400 and $700 but are often discounted through payment processors such as COCARD. Speak with us today—your EMV solution might even be free.

One thing to remember is that as the United States fully transitions to using EMV technology, cards will include both the microchip and magnetic strip. The process is expected to take anywhere between three and five years.

COCARD aims to develop our reputation as experts on EMV. We will continue to keep you posted on new developments and new ways of looking at this groundbreaking technology.

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FullSizeRender

The Basic Guide to EMV

FullSizeRenderMaybe you’ve already gotten a glimpse; a customer pulls a credit card out of his or her wallet, and as they swipe, you see a chip that’s embedded in the card. Don’t freak out. You don’t have to work at Google to get it. You just have to understand a few simple points about this new chip.

Let’s demystify the mystery, decode the data, and simplify the complexity of EMV.

Use these tips as a basic guide to bring your company into a new era of safer, more secure transactions.

 

• Update, update, update. EMV technology is new to the US, and the truth is that not all POS machines are already EMV-capable. What this means is that you should check both your hardware and software to see which components (whether some or all) should be updated, which brings us to our next point.

• Stay connected with all parties involved. No EMV machine is an island unto itself. Your POS system requires cooperation with your bank, processor, and other individuals or companies connected to your POS system. Find out what they have to say about EMV to stay current with any updates regarding the technology. It will allow for a more seamless transition.

• Think smart. Plan ahead, and stay one step ahead of the game. Once you’ve got the ball rolling on updating your POS system, consider other ways in which your system can stay smart. This includes considering a cloud-based POS or tablet solution like Revonu POS by COCARD.

• Consider COCARD. If you are considering a POS provider, we have a number of options available for POS systems and can help you decide if a new system is right for you.

• Carry an umbrella. You should always plan for a rainy day. Although it’s unlikely, there is always the slight possibility that your POS will break down. It isn’t fair, we know; but stuff happens. You should make a back-up plan to prepare for the off chance of the unexpected. Did you know that the Revonu package by COCARD includes a FREE EMV terminal?

• Teach your employees to fish. We promise, this is the last metaphor. Here at COCARD, we believe that employees should be trained in the ways of EMV. That means that they should understand the technology and know how to use it. After all, having truly knowledgeable employees makes the company look good.

So that’s it, six key points to remember about EMV. As you continue to learn more about this new technology, use this as a basic guide during your company’s transition to EMV.

The EMV experts at COCARD are available to answer any questions you may have!
800-317-1819 or support@cocard.info

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silver American express chip card shown dipped, or being processed, in an emv terminal

Are You Ready for EMV?

silver American express chip card shown dipped, or being processed, in an emv terminalYou are probably hearing a lot about EMV in the news and maybe even receiving a few scary calls from merchant service providers who imply that EMV has something to do with PCI Compliance.  For the record EMV has NOTHING to do with PCI Compliance and no matter what software you are running on your POS COCARD can manage your EMV. Relax, COCARD is ready for EMV and we are here to help YOU be ready too.

A little background: EMV stands for Europay, MasterCard and Visa; it is the global standard for cards equipped with computer chips and the technology used to authenticate chip-card transactions.  Have you heard about all the data breaches in the last few years? EMV is the card association’s answer to these breaches, the technology has been used in Europe for more than 10 years and they have seen a drastic reduction in credit card fraud.

What happens?

In the beginning your exposure will be minimal because the only liability for fraud will be with cards that have chips implanted.  However, as time goes on, and if EMV becomes the new standard, your exposure will increase. If a chip card is used at a business that has not changed its system to accept chip technology and this chip card is fraudulent then the counterfeit card can be successfully used and cost of this fraud will fall back on the merchant.

What does this new technology mean to your business?

The switch to EMV means adding a new in-store technology to your current processing system or not.  Chances are you may already be EMV ready but in either case don’t worry, COCARD is here to help! Most importantly the EMV technology means greater protection against fraud in your business.

For ongoing updates and the most current information about EMV, PCI, card association updates and fraud alerts like us on Facebook and follow us on Twitter.

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Service Industry Boom

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Big news for the service industry: 2014 has brought a huge surge in the number of service-related companies. According to a recent article in Bloomberg, service industries—like restaurants and retailers—grew in July at the fastest rate since December 2005! Additionally, the Institute for Supply Management’s (ISM) non-manufacturing index increased to 58.7 (readings greater than 50 indicate expansion). The U.K. is experiencing similar trends in its service industry as well, which means your potential customers are ready and willing to spend. Terry Sheehan, an economist at Stone & McCarthy Research Associates is cited in the article as saying, “We’re seeing numbers that we haven’t seen since well before the financial crisis and recession, and they seem to be more sustained.”

Coinciding with this jump are an increase in new orders among service providers (they too are experiencing the highest ISM measure since August 2005) and an uptick in production (manufacturers have the highest ISM level since April 2011). Negative side-effects include an increased unemployment rate from 6.1 percent to 6.2 percent (given the influx of new job seekers into the labor market), a decline in the stock market (investors jumping on the anticipated uptick too soon) and an increase in competition for businesses in the service industry.

Worried about the influx of new competitors? Stay ahead of the curve by employing these business practices.

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Clover, a point of sale system which accepts contactless payments and EMV cards, shown in white with receipt printer and barcode scanner.

Feeling Lucky? Try Clover!

Clover, a point of sale system which accepts contactless payments and EMV cards, shown in white with receipt printer and barcode scanner.

At CoCard, we’re devoted to making sure our clients find the POS systems best suited to their needs. So we’re thrilled to be adding the Clover POS system to our roster of services! In case you’re unfamiliar, a Clover Station is a cash register, terminal and POS system in one that allows business owners to accomplish a range of tasks within one inclusive system. With Clover, you can track your inventory, view reports, and manage employees, while juggling various other tasks. While this system can certainly be implemented at numerous business types, CoCard finds that Clover is the best fit for quick-service restaurants, full-service restaurants and specialty retailers. Thinking about switching? Call us at 1.800.317.1819 or drop us a quick line at sales@cocard.info.

SEE THE CLOVER POS HERE

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hacker-attack-password-e1408979984585

Hacker Alert:

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In case you missed the news at the beginning of this month, in early August, a Russian crime ring collected the largest known cluster of Internet credentials to date, which included 1.2 billion user name and password combos and more than 500 million email addresses in a mega-security breach. Milwaukee’s Hold Security discovered the violation and says the security breach affected several large businesses, but was unable to share the names of those affected due to nondisclosure agreements and victim security. The hackers cast a wide net, going after large and small business websites alike in countries around the globe—including the United States and Russia. According to an August 5 New York Times article, it appears the hackers haven’t sold much of the data, but are instead using this hacked info to send spam through social media sites, like Twitter for a fee. This article identifies the hacking ring as a small group of less than a dozen men in their 20s, based in south central Russia.

While it’s always troubling to hear news like this, don’t panic. Instead, tighten your Internet security measures. Ensure that you’re using strong passwords and that you’re utilizing different passwords on different websites. If you know you’re guilty of being lax with your passwords (or use the same ones on multiple sites), updating them to stronger passwords is a good idea. You may also want to check out one of the automated password changing services out there, like this free one, to ensure you’re keeping hackers on their toes.

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