• What is EMV
• Why EMV
• Liability Shift
• How to Comply
• How to Estimate Liability
• Gravity Payments: Who We Are
What is EMV?
Europay Mastercard Visa or Chip/Pin Cards
Dip not swipe
“Smarter terminals” lead to less exposure – not
sending the credit card number through the
Reduce the risk of accepting counterfeit cards –
data is harder to copy than that of the
No change for e-commerce
Counterfeit credit card losses > $11billion/year
63% paid by issuing banks - 37% by merchants*
Banks have the incentive to require tighter
security at the point-of-sale
United States has become “low-hanging fruit”
October 2015 - Applies to card-present counterfeit
fraud on EMV cards ONLY
Before the liability shift – counterfeit fraud = bank
After the liability shift – counterfeit fraud
1. Was the card EMV capable?
2. Was the merchant EMV enabled?
• Yes/Yes – bank pays
• No/Yes – bank pays
• Yes/No – merchant pays
• No/No – bank pays
HOW TO COMPLY
Some issuers are sending out cards that are pin
If both, the card and the terminal will talk to discuss
whether the customer should enter a pin or sign
No requirement for customer to dip on signature
How to Comply
How to Estimate Liability
How well do I know my customers?
What are my historical chargeback rates?
How big are my transactions?
Past performance is no guarantee of future success
Don’t be the sick wildebeest