What is EMV Acceptance and the EMV Non-Acceptance Fee?

A Quick Refresher on EMV

In October 2015, the liability for transactions made with counterfeit cards shifted to businesses without EMV chip card technology in their POS systems or card terminals.

As of September 2019, Visa reported that 3.7 million merchant locations accepted chip cards.

For merchants that have completed the EMV chip upgrade, they have experienced a 87% drop in counterfeit payment fraud in September 2015 to March 2019. 

What is EMV Acceptance?

EMV acceptance refers to the capability of a merchant’s payment system to process transactions using EMV chip technology. Named after its original developers (Europay, MasterCard, and Visa), EMV is a global standard for credit and debit card payments that features enhanced security through a small, integrated chip. 

This chip generates a unique transaction code for each payment, significantly reducing the risk of fraud. EMV acceptance not only elevates the security of transactions but also aligns businesses with international payment standards, ensuring they can cater to customers from around the globe with confidence and ease.

What is an EMV Non-Acceptance Fee?

The EMV Non-Acceptance Fee is a charge imposed by some payment processors on merchants who have not upgraded their point-of-sale (POS) systems to accept EMV chip card transactions. EMV represents a global standard for credit and debit payment cards equipped with chip technology, offering enhanced security over traditional magnetic stripe cards. 

This fee serves as an incentive for businesses to adopt EMV technology, aiming to reduce fraud and secure transactions. As the adoption of chip card technology becomes more widespread, merchants who delay the transition may find themselves facing these additional fees.

Clearent by Xplor does not penalize merchants who have not adopted EMV chip card technology. However, some other credit card processors do. In the event that you see a “EMV Non-Acceptance Fee” on your monthly statement, here is what you need to know.

More About the EMV Non-Acceptance Fee

Those payment processors that charge an “EMV Non-Acceptance Fee” will charge their customers who do not accept chip cards a $299 fee on their processing statement. 

To motivate businesses to adopt EMV, many payment processors continue to educate their customers about its benefits. The primary benefit includes fewer chargebacks and the ability to support multiple payment methods such as Apple Pay.

3 Benefits of Adopting EMV Acceptance

The rollout of EMV technology in 2015 represented a pivotal shift in payment security and convenience. With its global standardization, EMV not only enhanced transaction security but also paved the way for advanced payment solutions, ensuring a seamless and secure shopping experience for consumers and merchants alike. Additional EMV benefits include:

1. Enhanced Security and Fraud Reduction

EMV chip technology significantly enhanced payment security compared to traditional magnetic stripe cards. Each transaction made with an EMV chip card generates a unique transaction code that cannot be reused, making it extremely difficult for criminals to replicate and use stolen card data for counterfeit fraud.

2. Global Acceptance

EMV cards are now accepted worldwide, providing a standardized system for card payments across different countries. This global acceptance benefits travelers and international shoppers, ensuring they can use their cards securely and conveniently anywhere EMV technology is supported.

3. Support for Advanced Payment Technologies

EMV technology helped to lay the foundation for integrating advanced payment methods, including contactless payments and mobile wallet transactions. This adaptability not only enhanced the customer experience by offering faster and more convenient payment options but also future-proofs payment systems for emerging technologies.

3 Obstacles to Adopt EMV Acceptance

Adopting EMV technology, despite its clear advantages, comes with its own set of challenges for businesses. These obstacles stem from various operational, financial, and technological factors that can hinder the smooth transition to more secure payment methods. 

Overcoming these hurdles is crucial for merchants aiming to enhance transaction security and meet the evolving expectations of consumers. Below are 3 common reasons why businesses haven’t adopted EMV and solutions to these obstacles. 

1. Inertia & Priority

Some business owners may not have a specific reason for not adopting chip cards. Perhaps they don’t understand the benefits or don’t believe the risk of chargebacks is high for their business. Maybe they live by the old saying, “If it ain’t broke, don’t fix it.” Either way, EMV just isn’t high on their to-do list.

2. Time Consuming

Initially, many businesses hadn’t adopted EMV because it slowed down the checkout process. While traditional magnetic stripe transactions happen in near real time, chip card transactions can take 10-15 seconds. Slow checkout lines can reduce sales and frustrate customers.

To speed up EMV transactions, the payment networks introduced a faster way of processing EMV cards, which is commonly called ”Quick Chip.” EMV Quick Chip can be implemented by anyone, but it takes time for the development and EMV certification process.

At Clearent, we recognize the importance of fast checkouts, so we implemented Quick Chip. Our customers can get the security benefits of EMV without causing delays at the counter. Check out our Quick Chip EMV card reader.

3. Expense

Some businesses have refused to adopt EMV due to the cost of upgrading their terminal or point-of-sale system. The costs to upgrade can vary based on the type of POS and number of stations.

We offer EMV-ready credit card terminals with a variety of options and price points to make the transition to chip cards as painless as possible. We also offer solutions for POS companies to adopt EMV with a fast integration and no additional EMV certification.

Wrapping Up

Transitioning to EMV compliance is crucial for securing transactions and staying competitive. The path may have its challenges, but the advantages far outweigh the hurdles. Don’t navigate this journey alone. Reach out today to streamline your move towards a safer, more advanced payment system.