What are EMV cards?
EMV stands for Europay, VISA and MasterCard. Currently, traditional card transactions are processed through the information contained on the magnetic stripe of the card. With EMV cards, a small computer chip is included in the card. The technology associated with the chip adds a layer of verification when the card is used at an EMV enabled terminal to help ensure that the card has not been duplicated. You may hear EMV cards referred to as:
- Smart card
- Chip card
- Smart-chip card
- Chip-enabled smart card
- Chip-and-choice card (PIN or signature)
- EMV smart card
- EMV card
When will I receive an EMV card from Mid American Credit Union?
At this point in time, Mid American Credit Union has not issued EMV cards. We will continue to monitor terminal deployments, merchant readiness and other card processing factors to help us determine the best time to issue EMV-enabled cards.
Are merchants and financial institutions required to update to EMV?
No, there is no legal or regulatory requirement for either the merchant or the card issuer to update to EMV. In fact, estimates are that only about 50% of terminals, 29% of credit cards and 17% of debit cards will be EMV-enabled by the end of 2015 with widespread rollout not anticipated for several years.
Will my Mid American card work in an EMV-enabled terminal?
EMV-enabled terminals also support current card-swipe technology, so you can use your existing Mid American card at any EMV-enabled merchant or ATM location.
Am I exposed to potential liability without an EMV card?
Your liability for fraudulent card transactions will not change. You should continue to follow fraud prevention steps such as not disclosing account, personal or card information, monitoring account transactions and immediately reporting any unusual activity.
What is the significance of the October 1st date?
In order to encourage EMV, merchants will now bear liability for fraudulent transactions if they continue to use non-EMV terminals. Consumer liability for transactions has not changed.
Will EMV cards eliminate card fraud?
No, EMV will not eliminate card fraud. For example, since the physical card is not utilized for internet based-transactions, EMV will not protect against fraud in those situations.
What is the value of EMV?
If fraudsters produce a copy of a traditional magnetic stripe card, they can use the card repeatedly because the data on the magnetic strip doesn’t change with each transaction. With an EMV card, the computer chip creates a unique transaction code that changes with each use. If chip information is breached, the typical card duplication would not work because the information would not be usable for other transactions. EMV technology will not prevent data breaches from occurring, but it will make it much harder for criminals to successfully profit from the data they’ve obtained.
Why the delay in full market acceptance?
With an $11 billion estimated price tag for full deployment, some merchants have delayed installation of EMV terminals. Furthermore, EMV does not address fraud related to "card-not-present" transactions, such as internet-based transactions.
What are the cost considerations?
EMV cards are about two to three times more expensive to issue. This is a significant consideration for card issuers, such as Mid American, that proactively reissue all cards that may be affected by a merchant data breach.
In summary, we believe it will take some time to fully realize the potential security benefits of EMV cards. We will continue to monitor the progress in order to provide our members with the best security options available.