#emvchip

What are the characteristics of a good pos terminal?

Excellent performance. Making payment convenient and secure.

Thin and portable. Pay anytime and anywhere

Various payment. NFC, magnetic stripe, emv chip and qr code payment

Strong capability. Camera scanner optional

JTact C90 is such a convenient and suitable fintech pos machine for your demand.

Matthew Dittmann, CPA

Accountant, Spire Group, PC

Let’s conduct an experiment. Have you been issued a new credit card recently? If so, grab your wallet and compare that new card to a card you’ve had for a while. You should notice a difference on the face of the cards. The little silver box you see above the card number is actually a computer chip. Going forward, credit and debit cards will be issued with EMV chip technology. And it’s that little silver chip that’s going to improve transaction security and change how we use our cards.

While EMV chips are relatively new to the U.S., they have been utilized abroad for some time now.  The traditional magnetic strip means of processing credit cards is slowly going the way of the buffalo. Magnetic strip cards are more easily stolen because the strip contains all the information pertaining to the cardholder. If you can replicate the strip, you can duplicate the card. The technology in the EMV chip cards creates a unique transaction code for each separate use of the card. Once the transaction is complete, the transaction code is useless. Therefore, if a counterfeiter steals the EMV card information from a specific transaction, they won’t have a valid transaction code to use the card.

As cards are transitioning, they will continue to bear the magnetic strip in addition to the EMV chip.  The goal is to have most card terminals in the U.S. EMV enabled by the end of 2017. The EMV enabled terminals will process transactions in two different ways, either by inserting cards into a terminal to be read (“card dipping”) or tapping the chip against a terminal scanner (“near field communication”). The first wave of EMV chip cards supports the “card dipping” technique.  As the technology becomes more prevalent, financial institutions will transition to dual-interface cards that support both techniques.

October 1st was a big day for EMV chip cards. That date represented a soft deadline for merchants to become EMV chip card compliant.  I use the term “soft deadline” because merchants may still process these cards using the magnetic strip. The change is that the liability for card-present fraud now shifts to the merchant. If a consumer’s EMV chip card information is stolen through a merchant’s terminal that is not EMV chip enabled, the merchant may be liable since their equipment is less secure than the technology in the card. ATMs and gas stations will be subject to the same liability beginning October 1, 2017.

As with most technology overhauls, there will be some growing pains over the next few years. But as I mentioned earlier, EMV technology has a proven track record of success in other countries. It has been implemented in order to curb counterfeiting and it appears to have been successful in doing so. And once the U.S. fully integrates EMV chip technology, U.S. credit and debit cards will be more easily used by citizens traveling abroad. So you shouldn’t have any trouble buying Starbucks in London

With roots dating back to 1975, Spire Group, PC is a full-service certified public accounting firm specializing in accounting, assurance, tax, business advisory and technology services. The firm’s clients include startups, closely held/family businesses, nonprofits and governmental entities, and high-net-worth individuals.