Two main reasons:
At present the information held on a magnetic stripe is able to be fraudulently extracted using devices such as skimming machines. This information cannot be extracted from a chip.
Chip Cards have the ability to store more information so that the card and its rightful owner can be confirmed more readily.
Can Chip Cards be used for other purposes
Because of the storage capacity on a chip card there is a wide scope for them to be used for other purposes. This includes loyalty, Medical Records, Visa and Passport information.
Will Chip Cards work on both EFTPOS terminals and ATM machines
Yes, to find out more about ATM machines please contact your bank.
Where does EMV™ come from
EMV™ originated in Europe with the credit card companies Europay, MasterCard and Visa but is now a worldwide standard.
Which EFTPOS terminals will be affected
Every EFTPOS terminal in New Zealand is affected by these new standards.
When will I have to replace my EFTPOS terminal
This depends on the EFTPOS terminal you have and the software which runs it. For more information please phone Eftpos Specialists Taranaki Ltd on 06 759 4148.
Is it necessary for me to upgrade if all my EFTPOS transactions are done manually
Yes, all devices which process electronic payments must be compliant.
How long before I need to upgrade again
In future regular upgrades of EFTPOS equipment and software will be required.
Will this change my bank fees
For information on merchant services fees please contact your bank.
What is Liability Shift
This is the shift in liability for a fraudulent credit card transaction. Currently the bank holds this responsibility, however this may be shifted to the merchant if they fail to comply with EMV™. For further information on how this liability shift may affect you please contact your bank.
