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Top 5 Facts Merchants Need To Know About EMV
June, 2015
Lindsay Breathitt, Product Marketing
Steve Cole, Product Management
© 2015 Vantiv, LLC. All rights reserved.
© 2015 Vantiv, LLC. All rights reserved.
Vantiv Companies
Agenda
• Why EMV, Why Now
• U.S. market update EMV
• Top 5 EMV facts
• Understanding EMV
integration approaches
• Preparing for EMV
• Questions
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Why EMV, Why Now?
3
• U.S. card present fraud is above the world
average and is increasing*
• Interoperability with global payments
infrastructure
• Supports enhanced verification methods
• Offline PIN, Online PIN, Signature, No CVM
• 575 Million U.S. issued cards will have chips by
end of 2015**
*Source: Nilson Report, August 2013.
**Payments Security Task Force (PST), MasterCard release 8/2014
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What is EMV?
• EMV is a set of international standards that defines
interoperability of secure transactions across the
international payments landscape.
• EMV helps prevent fraud. Chip produces a one time
code with every transaction, making it nearly impossible
to counterfeit.
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Vantiv Companies
U.S. Market EMV Timeline
“More than $11 billion was reported stolen due to credit and debit card fraud in
2013, up from $8 billion 2012…” -Javelin Strategy and Research
2014 Identity Fraud Report
April 1, 2013
Acquirer processors were
required to support merchant
acceptance of chip transactions.
October 1, 2015
Liability will shift to merchants for counterfeit fraud
card-present POS transactions if the merchant does
not have an EMV-enabled POS device
October 1, 2017
Liability shift takes effect for
transactions generated from
automated fuel dispensers
Key dates
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How EMV Works
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Step 1 An EMV card is inserted into a terminal
Step 2
The chip embedded in the card contains a unique issuer key; this is accessed by the reader in the terminal
Step 3 Using the key from the card and data from the transaction, the chip creates and sends a unique code, or “cryptogram” to the processor’s host with the approval transaction, allowing the issuer to validate the card is legitimate and not counterfeit
Step 4 The card is removed when the transaction is completed
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© 2015 Vantiv, LLC. All rights reserved.
© 2015 Vantiv, LLC. All rights reserved.
Vantiv Companies
Top 5 Facts About EMV EMV is about fraud
prevention at the POS
• The U.S. has seen
a 70% increase in
credit card fraud
since 2007, while
the U.K. has seen
an 80% decrease
after migrating to
EMV.
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Source:
http://www.accenture.com/SiteCollectionDocuments/PDF/Acc
enture-Payments-Transformation-EMV.pdf
© 2015 Vantiv, LLC. All rights reserved.
© 2015 Vantiv, LLC. All rights reserved.
Vantiv Companies
EMV is a way to limit your
fraud chargeback risk
• Consider EMV in light
of fraud chargeback risk
• October 1, 2015 liability
shift – In 2015, that
liability in the United
States is estimated to
total more than $10
billion
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Source:
http://www.paymentssource.com/news/paythink/missing-
the-emv-liability-shift-bears-a-huge-cost-3018661-1.html
Top 5 Facts About EMV
© 2015 Vantiv, LLC. All rights reserved.
© 2015 Vantiv, LLC. All rights reserved.
Vantiv Companies
Enabling EMV at the
POS may also enable
you to accept new
contactless payment
types.
• Contactless payments
can be up to 25% faster
than paying with cash.
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Source: Deloitte, http://www.pymnts.com/wp-
content/uploads/2015/04/EMV-The-Next-Twelve-
Months-PYMNTS-ebook.pdf
Top 5 Facts About EMV
© 2015 Vantiv, LLC. All rights reserved.
© 2015 Vantiv, LLC. All rights reserved.
Vantiv Companies
Accept foreign cards
that are already EMV-
enabled
• 45% of the World’s
payment cards are
EMV – 3.4 billion
cards.*
*Includes ~100 million
cards in the U.S.
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Source:
http://www.emvco.com/media_center.aspx?id=48
Top 5 Facts About EMV
© 2015 Vantiv, LLC. All rights reserved.
© 2015 Vantiv, LLC. All rights reserved.
Vantiv Companies
EMV does not mean
your data is secure
• Implementing a total
secure payment
solution includes: PCI
Compliance,
Tokenization, and
Encryption from
Vantiv
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Top 5 Facts About EMV
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Vantiv Companies
EMV Options
• Direct integration (Enterprise Merchant Approach)
• Stand alone terminal unconnected to POS (SMB)
• Integrated POS: EMV scope reduction (semi-integrated)
approach (SMB)
Terminal POS Middleware/
Gateway Processor Network
EMV Level 3 Certification
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EMV Ready Devices
• Get EMV ready
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QUESTIONS?
Visit www.vantiv.com/emv to learn
more about EMV, chip cards, and how
to better protect your business.
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Vantiv Companies
THANK YOU!
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