CHIP & PIN
Developments in the field of payments have moved towards increasingly sophisticated solutions. Embossed credit cards replaced checks, and these were subsequently complemented with magnetic stripes. Internationally, a new standard is being implemented, based on chip technology similar to what is used in computers and mobile phones. The chip will become an alternative to magnetic stripes.
New standard
The Chip & Pin technology is an international standard for making card payments at points of sale and for cash withdrawals from automatic tellers. The international card payment schemes MasterCard and VISA are behind the new standard that was developed primarily to reduce card fraud in vulnerable markets.New technology requires new type of terminal
Adaptation to the new credit card standard is moving at different rates in different countries. This means that new credit cards that contain chip will continue to have magnetic stripes for a number of years into the future.Liability shift
The shift in liability is between the acquiring bank and the card-issuing bank. Liability between Euroline as the acquirer and you as a Merchant is a part of the acquiring agreement. Consideration is taken to availability of terminals that can manage the new credit card standard, to the risk classification of the business, and to how long it will take to upgrade the terminals to the new chip technology. Until the new technology becomes more widespread, it will not entail any changes for you as a Merchant and customer of Euroline. Even so, it is important that if you are making preparations to invest in new payment terminals or new cash register systems, that you already make demands on your suppliers that service agreements include stipulations for upgrading payment terminals/cash register systems to the new chip technology as soon as it is available on the market.Checklist
When buying or leasing new payment terminals, you should place the following demands:- That approved EMV solutions (software) are installed in the terminals, or will be within the near future.
- That an approved PIN Entry Device (PED) is available under agreed-upon conditions.
- That installation of the EMV solution, if it will be taken care of later, is performed under prearranged conditions that include costs for any sending in and upgrading of the terminals.
- That installation of EMV and good performance do not require supplementary hardware, or that the conditions for such hardware are regulated.
- That any necessary changes to applicable conditions are made in conjunction with installation of the EMV solution.
