However, this technology requires merchants to invest in the appropriate terminals, train staff (and their customers) and often to re-work their point of sale protocol. Instead, they will insert or dip their card into a slot at the bottom of the terminal. Once instituted at a merchant’s location, customers will no longer “swipe” their card as part of their authorization of a credit card transaction. Thus most retailers will continue to have the election of whether they will read the card’s magstripe or chip (assuming a chip is present).īecause of the security improvement offered by chip enabled credit and debit cards, the now-famous liability shift exists to incentivize merchants to adopt chip reading terminals at their checkout counters. For the time being, however, all cards, even those with chip technology, will continue to be produced with magstripes.
CAPITAL ONE EMV CARD CODE
Compared to the standard static magstripe technology, it is expected that placing an integrated circuit, or “chip,” into credit and debit cards, with the consequential ability to create a dynamic transaction code for each transaction, will be a great leap forward in the fight against credit card fraud. But nonetheless, this is exactly what nine Attorneys General recently did.Īs most everyone knows, effective October 2015, the PCI Security Standards Council brought into effect a major change to all credit card contractual rules to encourage merchants and issuing banks to adopt EMV chip technology.
Should state Attorney General’s (AG’s) intrude in the private market place to influence the choice consumers and merchants’ make as to the type of payments they will prefer for credit card transactions? By any account, those are complicated business decisions involving complex cost, risk, marketing, technology and personal preference issues, which are often unique to each business’s situation.