General

No one has approached us about EMV so I assume we do not need to do anything. Is that true?

Your Merchant Acquirer is likely to contact you about your EMV needs. In the meantime it is advisable that you participate in communities like ACT and engage advisors/ consultancies to keep you apprised of chip & PIN developments. Source: Deloitte Your terminal provider/acquiring partner should be approaching you soon. You are also able to approach them to enquire and learn about the migration.

Does EMV change the way we take credit and debit at the POS?

Yes. Consumers using magnetic stripe cards often give their card, and thus their credit or debit card number, to personnel at the point of sale. Consumers using chip & PIN cards will not need to give their card to anyone when making a purchase. Instead, personnel at the point of sale will give consumers a card reading device into which the consumer will place their card and then enter their PIN. By not providing their card number or PIN to anyone, consumers will be better protected against fraud. To this end, point of sale personnel will need to be trained on how to interact with consumers using chip & PIN cards.

Why move to chip cards? Can’t they be copied like mag-stripe cards?

The encryption on a chip card is superior to a magnetic stripe card making it more difficult to copy. Additionally, the usage of the card at the point of sale as described in the answer above will also help prevent fraud.

It is very easy and inexpensive to copy mag-stripe cards, the introduction of chip card technology and complex encryption techniques reduce this risk.

Chip cards are virtually impossible to counterfeit. Compromised account information cannot be used to create either a counterfeit chip card or applied to a magnetic stripe card that can be used at a chip-enabled point-of-sale device.

How do I know that I won’t have to upgrade again in the near future?

Considerable investments have been made in chip & PIN and it has been rolled out successfully in several countries. Based on this success and the investments made to date, there are no plans at this time to upgrade chip & PIN for several years to come.

Are you planning to introduce biometrics in the next few years and how would that work with an EMV terminal?

There are no plans to introduce biometrics at this time.

Chip based payments would support biometrics and is used for closed payment systems in countries in Africa and the like. Some retailers are already adopting biometrics without a card in the US, but it remains limited in take up.

What are the steps and milestones for EMV conversion?

Your Merchant Acquirer should guide you through these steps and milestones.

Although Visa Canada Member financial institutions will implement chip at their own pace, it is expected that by 2010, almost every Visa card in Canada will feature chip technology, and most merchants will have the equipment to accept and fully benefit from chip technology.

Where do we go for help? We are a mid size retailer and are unsure of timelines and options. We cannot afford to allocate a lot of resources to this, so waiting until the last minute would be a disaster for us.

Contact your Merchant Acquirer.

Firstly your banking partner and terminal provider – they should provide appropriate information. Many organizations have sourced specialist consultants and advisors to guide them through their migration.

When should we expect customers to show up with chip cards and what do we do with them?

Members of the Canadian payments industry — Interac Association, MasterCard Canada Inc., Visa Canada and many of their respective card issuers, payment processors and merchants –– are participating in a chip trial in Kitchener-Waterloo, Ontario and merchants in this area may see cards as early as October 2007. Chip cards are slated to appear more widely in Canada between 2007 and 2010.

Will it take longer to process payment with the proposed chip and pin? How does it compare to existing credit and debit and to cash?

Although chip transactions involve complex encryption, within EMV the option exists to process transactions off-line eliminating time required for on-line authorization with host systems.

I hear we don’t need to be EMV ready until 2015. Is this true?

No. That date is for Interac to look at removing the acceptance of mag stripe on Interac cards across POS and ABM. If you don’t want to be exposed to reputational risk, liability shifts and higher fees, you should be considering your migration efforts now for readiness before 2010. NB. Visa liability shift is October 2010. The duration of your project will depend on scale of retail POS, who owns them, resource availability etc…It could be a 2 year project in some cases.