EMV Vs Non EMV

As a small business or medium-sized business, it's important to understand the differences between EMV and non-EMV credit and debit cards, as this can have a significant impact on the security of your payment system and your liability for fraudulent transactions.

First, let's define these terms. EMV stands for Europay, Mastercard, and Visa, and it refers to a set of technical standards for credit and debit cards that incorporate microprocessor chips. These cards are also known as chip cards or smart cards. Non-EMV cards, on the other hand, are the traditional type of credit and debit cards that use a magnetic stripe to store data.

One of the main differences between EMV and non-EMV cards is security. EMV cards are generally considered to be more secure than non-EMV cards because the microprocessor chip generates a unique code for each transaction. This makes it much more difficult for fraudsters to create counterfeit cards or make unauthorized charges, as the unique code cannot be easily copied or skimmed like the static data on a magnetic stripe.

For small businesses and medium-sized businesses, the adoption of EMV technology can help to reduce the risk of fraudulent transactions and lower the liability for chargebacks. If you accept non-EMV cards and a fraudulent transaction occurs, you may be held liable for the chargeback if the customer disputes the charge. However, if you accept EMV cards and a fraudulent transaction occurs, the card issuer is typically liable for the chargeback.

In addition to increased security, EMV cards can also offer other benefits to small businesses and medium-sized businesses. For example, EMV cards can improve the customer experience by providing a faster and more seamless checkout process. They can also help to reduce the risk of card-present fraud, which can be a problem for businesses that accept in-person payments.

Many countries have already adopted EMV as the standard for credit and debit card payments, and merchants are required to use EMV-compliant point-of-sale (POS) terminals to accept these cards. In the United States, the adoption of EMV has been slower, but most merchants now accept EMV cards, and many are replacing their non-EMV POS terminals with EMV-compliant ones.

If you're a small business or medium-sized business that accepts credit and debit card payments, it's important to ensure that your payment system is EMV-compliant. This can help to protect your business from fraudulent transactions and reduce your liability for chargebacks.

Learn more about our Clover EMV enabled devices.