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Spokane Credit Card Processing Company Confirms New Credit Card Terminals May Already Need to be Replaced!

(Forimmediaterelease.net) “Yes, the title of this news release is correct. If a business recently bought or received a new credit card processing terminal it’s probably already outdated!"
For the past few years the press has been reporting about this new “Chip Card” technology coming to America soon.

These “Chip Cards” are actually called EMV or Europay, MasterCard and Visa. Approximately 120 million Americans have already received an EMV chip card and that number is projected to reach nearly 900 million by the end of 2016, according to Smart Card Alliance estimates. Some of These New Credit Card Terminals May Already be Outdated!
This is what Wikipedia says about these new EMV Cards:

“EMV stands for Europay, MasterCard and Visa, a global standard for inter-operation of integrated circuit cards (IC cards or “chip cards”) and IC card capable point of sale (POS) terminals and automated teller machines (ATMs), for authenticating credit and debit card transactions.

Several large banks (Bank of America, Chase and WellsFargo etc.) are beginning to now issue chip cards – also known as smart cards or EMV (Europay, MasterCard, Visa) cards – to provide consumers with a more secure way to pay. These Spokane credit card processing Chip cards and credit card terminals are standard in many parts of the world and have been proven to significantly reduce card-present counterfeit fraud.

EMV chip card transactions improve security against fraud compared to magnetic stripe card transactions that rely on the holder’s signature and visual inspection of the card to check for features such as hologram. The use of a PIN and cryptographic algorithms such as Triple-DES, RSA and SHA provide authentication of the card to the processing terminal and the card issuer’s host system. The processing time is comparable to online transactions, in which communications delay accounts for the majority of the time, while cryptographic operations take comparatively little time. The supposed increased protection from fraud has allowed banks and credit card issuers to push through a ‘liability shift’ such that merchants are now liable (as from 1 January 2005 in the EU region) for any fraud that results from transactions on systems that are not EMV capable.”

The implementation of EMV in the UK resulted in a 75% decrease in credit card fraud at brick and mortar stores over 8 years (2004 to 2012). However, European fraud has actually increased and has merely switched to new locations.

on-line transactions
elaborate ATM fraud
markets without chip-and-PIN like the US

Online credit card fraud has skyrocketed in Europe after EMV was implemented there.

CHIP CARDS, BY THE NUMBERS:

59%: Percentage of retail locations that will be EMV-compliant by the end of 2015.

78,800: Current number of EMV chip-activated merchant locations

40%: Percentage of US. debit cards that will be issued as EMV cards by the end of 2015

70%: Percentage of U.S. credit cards that will be issued as EMV cards by the end of 2015

86%: Percentage of financial institutions that plan on issuing EMV debit cards in the next two years

$3.50: Average cost for issuing a new EMV card

$500: Average cost of an EMV-compliant point-of-sale terminal


Sources: Javelin Research&Strategy, Aite Group, 2014 PULSE Debit Issuer Survey

“In a future online shopping scenario, consumers may be able to tap their NFC phone against their NFC computer to create a “Phone Present” transaction…" — MasterCard International

So what does this mean in plain English?

EMV (Chip and Pin and/or Chip and signature) is basically a chip in the credit or debit card (we're also seeing them in wristbans, shoes, bracelets and many other wearables) that replaces the magnetic strip on the back of the card. In the old way you would swipe a card and the credit card terminal would read the data in the magnetic strip and process the card. With the new EMV requirements the credit card terminal, or ATM, will have to read the chip instead of the magnetic strip. Once the terminal reads the chip the customer enters their 6 digit “Pin Code” or in the U.S. they use their signature.

EMV will also allow for contactless payments where the customer waives the card over the terminal where it will read the chip.


What are the benefits of this new technology?

1. Using a chip makes it nearly impossible to counterfeit stolen cards
2. The computer chip allows for ‘one time use” transactions
3. Stolen chip data cannot be duplicated
4. Less risk of fraud
5. Liability shifts from the merchant to the card holders Bank
6. Enables acceptance of Apple’s Apple Pay and the Android Soft Card Contactless Payments


Ok, so why would a business need a new credit card terminal already?

On October 1, 2015, the card brands are implementing chargeback rule changes. Currently, when a counterfeit card is accepted by a merchant, the card issuer is responsible for the fraud loss. On October 1, 2015, the card-present counterfeit card liability will shift to the merchant if a chip card is presented but the point-of-sale system is not enabled to read the chip. This is NOT a compliance mandate; instead, accepting chip card transactions will limit a merchant’s future chargeback exposure for certain types of card-present chargebacks.

Because of the liability shift everyone will need to have an EMV capable system and the processing Banks (acquirers) will strictly enforce this. Issuing Banks can still issue the old fashioned “Non-Chip” cards as long as they assume the fraud risk and merchants will still be able to process the old cards until 2017. However, most processing companies will access a surcharge on these cards and some will even change a hefty “Non-Compliance Fee” for using a non EMV Certified credit card terminal.

The credit card terminal suppliers have been pushing terminals out to resellers, Banks and processors for the past few years that were supposed to be EMV ready. Now we’re finding out the terminals weren’t ready and did not meet the security standards without an added $250 encrypted pin pad attached. It is estimated that 80% of all terminals in the U.S.A. will have to be replaced by the Oct 1, 2015 deadline or pay the hefty Non-Compliance Fees. The non-compliance fees are rumored to be 4% but right now it's just a guess?

Be aware there is hardware (i.e. credit card terminals) that have a chip card slot but do not and will not have the software available to download to make the terminal EMV-enabled. There are very few devices that have this capability and most of the suppliers don’t have the correct credit card terminals in stock. For any virtual terminal, mobile or PC based software/cash register, POS System, the software, hardware and payment gateway all have to be EMV certified by the processor for each card brand. This will take much longer then Oct 1, 2015 so either they extend the deadline or quite a few merchants will be paying a surcharge on top of their other fees!


So how does this affect Square and other Merchants?

Square is already selling a chip reader for $29.95 to replace the free one all their merchants were using. This new chip reader will be a required purchase if a merchant wants to accept credit cards after the Oct 1, 2015 deadline. As for the other merchants you’ll have an expensive choice. Chase is selling an EMV POS System for $999.00, some companies are offering a free EMV terminal to new merchants and others are offering a new upgrade for a few hundred dollars. Since this is actual hardware a new device will be required so just updating the software won’t cut it.


Will the Terminal Just stop working on Oct 1, 2015?

The credit card terminals not EMV Compliant will still work and you’ll still be able to swipe or key in credit card numbers but at a cost. What we’re seeing is monthly non-compliance fees of $20-$40 per month starting to hit and we’ll probably see surcharges of 4%-5% on top of whatever your transaction fees are. Don’t worry though because you can upgrade to a new EMV Compliant terminal to avoid the surcharges.


These are the current EMV credit card terminals certified for EMV:

PAX S90 gprs 3G with EMV and Contactless
PAX S90 cdma with EMV
First Data FD130 DUO WiFi Terminal
PAX MT30, 32Mb, Dial/Ethernet, Terminal
ExaDigm NX2200 CDMA Ethernet Wireless
Ingenico iSC 480 EMV NFC Terminal (iSC480
VeriFone Vx 680 3.0 3G GPRS
First Data FD 410GT GPRS EMV Terminal
VeriFone Mx860, EMV TCH SIG
VeriFone Vx 670 GPRS EMV
Ingenico iSC 250 EMV NFC Terminal
Hypercom/Equinox L5300 EMV
VeriFone Mx830 EMV
Ingenico iWL250 Bluetooth GPRS with EMV
First Data FD 400GT GPRS EMV Terminal
Ingenico Terminals: iWL255 EMV – NFC
VeriFone Vx 680 WIFI EMV Contactless
Hypercom Terminals: M4230 EMV GPRS 24Mb (0…
UIC PP795-EMV Signature Capture Pin Pad (NM0DKDOUB)
UIC PP795-EMV Signature Capture Pin Pad (N…
VeriFone VX 675 3G 192MB EMV NFC (M265-793-C6-USA-3)
VeriFone VX 675 3G 192MB EMV NFC (M265-793…
First Data Terminals FD130
First Data: FD130 Terminal with EMV / NFC/…
First Data Terminals: FD130
First Data FD130 DUO Terminal with WIFI-No…
UIC PP790 EMV Pin Pad Serial (RS232) (RH3DKD3UA)
UIC PP790 EMV Pin Pad (RH3DKD3UA)
DEJAVOO Vega Model V8 S Plus EMV&NFC (Contactless Reader) (N-DEJAVOO-V8S Plus)
DEJAVOO Vega Model V8 S Plus EMV&NFC…
Ingenico Terminals iCT 220
Ingenico Terminals: iCT220 Dual Comm 16Mb …
DEJAVOO Vega Model V8 S Plus EMV (N-DEJAVOO-V8S)
DEJAVOO Vega Model V8 S Plus EMV (N-DEJAVO…
Ingenico Terminals iCT250 ( ICT250-01P1100F)
Ingenico Terminals: iCT250 Dual Comm 16Mb …
VeriFone VX 820 PIN Pad EMV NFC (M282-703-C3-R-3)
VeriFone VX 820 PIN Pad EMV NFC (M282-703-…
VeriFone VX 820 PIN Pad EMV NFC (M282-703-C3-R-3)
VeriFone VX 820 PIN Pad EMV (M282-703-03-R-3)
VeriFone VX 520 Ethernet 160Mb
VeriFone VX 520 Dual Comm EMV / NFC 160Mb …
Hypercom Terminals T4210
Hypercom Terminals: T4210 EMV Dial 24Mb (0…
PAX S80 Dual Comm 16Mb (S80-EML0)
PAX S80 Dual Comm 16Mb EMV NFC (S80-EML0)
VeriFone VX 520 Ethernet 160Mb
VeriFone VX 520 Dual Comm EMV 160Mb (M252-…
VeriFone VX 520 EMV Dial-up only 160Mb
VeriFone VX 520 EMV Dial 160Mb (M252-703-0…
VeriFone VX 805 EMV NFC (M280-703-A3-WWA-3)
VeriFone VX 805 EMV NFC Global Bay (M280-7…
VeriFone VX 805 EMV NFC (M280-703-A3-WWA-3)
VeriFone VX 805 EMV NFC (M280-703-A3-WWA-3)
Ingenico Terminals iCT 220
Ingenico Terminals: iCT220 Dual Comm 16Mb …
First Data FD 35 HardWired PIN Pad EMV (001791064)
First Data FD 35 PIN Pad EMV / NFC


Whatever the situation is as a retailer the merchant will have to get a credit card terminal that’s EMC Certified by Oct 1, 2015 or pay the price.

Electronic Transfer, Inc. is an A+ Better Business Bureau Member with 26 Years’ Experience.

ETI offers a full range of payment systems including Credit Card Terminals, Receipt Printers, Wireless Credit Card Terminals, Cell Phone Payment Systems and POS Systems. ETI also owns its own secure Payment Gateway called www.FastCharge.com. ETI offers youa Free Merchant Account Set-up and a Free Secure Payment Gateway Set-up. This is what you need to sell your products over the Internet 24 hours per day, 7 days a week. FastCharge works with over 5000 different Shopping Cart Companies.

For more information, visit ETI’s web site at www.elctronictransfer.com or call locally 509-924-6730 or toll free 800-757-5453

Company Name: Electronic Transfer Contact Person: Bob Donegan Email: bob@electronictransfer.com Phone: 5099246730 Address:3107 E. Mission City: Spokane State: WA Country: United States Website: www.electronictransfer.com/apply

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