If you are a retailer you are already in the process of converting all your card processing terminals to become EMV compliant. If not, you should be. The use of EMV compliant technology is now mandatory for any retailer because any false or fraudulent charges are now going to be charge-backs to the retailers if they are not EMV compliant.


The Technology

Prior to the introduction of the EMV “chip” card technology a credit or a debit card passed its information by the physical method of “swiping” the card through a reader that could read the information contained on the magnetic strip. The problem was that it was so easy to capture this information from the magnetic strip because it was not encrypted or protected in any way. This created an open opportunity for criminal elements to make millions of false credit and debit cards.


The credit card processing industry is silent about the total amount of the losses because it does not want to encourage more of this criminal behavior. However, over the past decades. the losses are in the hundreds of billions of dollars. Even the outrageous interest fees charged by credit card companies for the balances of their cardholder accounts could not cover such tremendous loss by fraud.


Then, the EMV chip arrived. It is an innocuous thing; just a tiny piece of intricately designed metal that is part of the physical card. Most cards in this transition period have both a magnetic stripe on the back and an embedded EMV chip. This little chip is really good because it is so small and it has so much power. The technology is really exceptional and has reduced card transaction fraud significantly. The FBI supports the deployment of this new chip but also notes that it is not the perfect solution because fraud continues to be a problem.



It does not matter what business you are in. If you are a retail business, being EMV compliant is critical. However, even other businesses such as wholesale businesses that occasionally accepts a card transaction for payment will also benefit from the deployment of EMV technology.


Contact ClearPay today to learn about the state-of-the-art and cost-effective solutions for EMV compliant systems that will work at the highest levels of performance for your particular business. We are the experts and we love helping our clients.