Does EMV guarantee electronic transaction security?
The reality is that there is no single solution today that meets the security requirements of every card-present, card-not-present, attended, unattended, quick service, fine dining, and other electronic payment environment. That said, any time personally presented card data is part of the transaction lifecycle, EMV is a critical component of any total security solution – one that protects both merchants and customers.
How will EMV actually affect how merchants’ conduct day-to-day retail business?
From a merchant’s perspective, the migration to EMV probably seems like a no-brainer. A small merchant, especially one that uses a pre-programmed standalone terminal (like Ingenico Group’s iCT250), might not expect to notice much operational change; after all, retailers will still accept credit and debit cards, still do business with a processor or acquirer, and still sell goods and services to customers who pay in a variety of ways.
The details of changing security solutions can be confusing, not least because of the proliferation of terms and abbreviations with specific payment-industry meanings. Here are some industry terms and acronyms that can help define and explain the components of multi-layered security:
They call it a “data breach.” An “attack by unknown hackers.” “Sensitive” customer information becomes “exposed.” Credit and debit cards are “compromised.” Pundits wring their hands; merchants live in fear; and customers become increasingly wary of using their cards. Still, the reports just keep coming in.
Let’s be honest: the core problem is that using stolen MSR card data to create and sell counterfeit cards is big business. Big, international, lucrative business. It’s an organized crime scheme that is increasingly migrating to the US because we are one of the last countries to implement EMV to authenticate cards used in payment transactions. In essence, we’re leaving the back door wide open and inviting the counterfeiters in.
The recent high-profile security breaches involving point of sale (POS) systems in the retail sector didn’t involve mobile POS (mPOS), but no one in the broader electronic payments industry want to see breaches happen. We need to work together to eliminate breaches and ensure continued trust in electronic payments.
