Learn how EMV changes the way merchants accept credit card payments and reduces businesses' liability for fraudulent transactions.

1. EMV 101 for Merchants

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Agenda
EMV Basics
• What is EMV
• Why EMV
• Liability Shift
• How to Comply
• How to Estimate Liability
• Gravity Payments: Who We Are

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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
network
 Reduce the risk of accepting counterfeit cards –
data is harder to copy than that of the
magnetic stripe
 No change for e-commerce

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Why EMV?
 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”

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Liability Shift
October 2015 - Applies to card-present counterfeit
fraud on EMV cards ONLY
Before the liability shift – counterfeit fraud = bank
pays
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

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HOW TO COMPLY
 Terminals
 POS systems
 Some issuers are sending out cards that are pin
capable
 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
transactions
How to Comply

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How to Estimate Liability
How well do I know my customers?
What are my historical chargeback rates?
How big are my transactions?
63:37 ratio
Past performance is no guarantee of future success
Don’t be the sick wildebeest

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WHO WE ARE
The Communities’ Most Trusted

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To learn more, visit
gravitypayments.com