EMV

What is EMV and What Does it Mean to You

When it comes to debit and credit card protection, you can never be too safe.  With new chip-enabled technology, your debit and credit card information will be more secure from fraudulent activity than ever before, and it will be accepted in more locations worldwide. Chip cards provide added security against counterfeit fraud when used at chip-enabled terminals. The chip also helps you use your card internationally, where chip technology is already in place.

How do EMV Chip Cards Work?

Using a chip card is fast and easy. Watch this short video to see how.


Have questions about EMV? See answers to common questions below. If you are a Merchant, click here for more information.

What Consumers Need to Know About EMV

EMV (also referred to as chip cards) is an acronym that stands for Europay, MasterCard®, and Visa®.  EMV is a payment application that resides in a computer chip embedded in a credit or debit card. The application specifications define a set of requirements that ensure compatibility between chip cards and card terminals. The founding companies, Europay, MasterCard®, and Visa®, developed chip technology to help improve security and fight fraud.

EMV has been widely used in Europe for many years and U.S. card issuers are now taking steps to make EMV the standard payment application for enhanced card security. The adoption of EMV will require financial institutions, payment networks, card issuers, payment processors, and businesses to make substantial changes to card issuing, transaction authorization, and related processes as well as point-of-sale and/or ATM equipment.

Click on the questions below to learn more about EMV.

About chip cards

Why does my Fidelity Bank credit card or debit card now include a chip?

As chip technology will soon become the security standard in the U.S., many merchants are beginning to accept chip cards and we want you to be ready. You’ll enjoy greater security when making purchases at a chip-enabled terminal since the chip provides better protection against counterfeit fraud. Chip technology is already used in over 130 countries around the world, including Canada, Mexico and the United Kingdom, so you’ll enjoy greater acceptance when traveling internationally.

What is a chip card?

A chip card is a standard-size plastic debit or credit card that contains an embedded microchip as well as the traditional magnetic stripe. The chip encrypts information to increase data security when making transactions at a chip-enabled terminal.

When will I receive a new Fidelity Bank debit card with chip technology?

Fidelity Bank debit cards are now available with an EMV chip on the front of the card as well as the tranditional magnetic stripe on the back. Fidelity Bank will begin to replace all of its personal and business debit cards with chip cards in the first quarter of 2016. To request a new personal or business debit chip card now, or to request a chip card to replace your existing personal or business debit card, please contact your local branch (click here for branch information) or our Customer Care Center at 1-855-547-1385.

What is a smart card or an EMV card?

You may hear chip cards referred to as “smart cards” or “EMV cards” – they’re all different ways of referring to the same type of card. Similarly, an EMV terminal is the same as a chip-enabled terminal.

Where can I use my chip card?

Many merchants, across the U.S. are beginning to accept chip card transactions and this will continue to grow within the coming years. Chip technology is already used in over 130 countries around the world, including Canada, Mexico and the United Kingdom, so you’ll enjoy greater acceptance when traveling internationally. Your chip card will still work at terminals where only magnetic stripe transactions are accepted.

Are chip cards secure?

Yes. Chip technology has been around for over two decades and is already the security standard in many countries around the world. When purchases are made using the chip feature, the transaction is more secure because of a unique process that is used to determine if the card is authentic. This makes the card more difficult to counterfeit or copy.

While magnetic stripe cards are still considered secure, chip technology is the next step to providing enhanced security to our customers. Whether you use the magnetic stripe or the chip to make your purchase, you can have confidence in the protection and security features we provide for all credit and debit card accounts.

Remember, if you notice any suspicious activity on your account, notify us immediately by calling the number on the back of your card.

Will chip cards prevent third-party data breaches?

Chip card technology provides an additional layer of security to help reduce certain types of fraud resulting from data breaches; however, it will not prevent a data breach.

Will chip cards prevent all fraud from happening?

No. As the industry continues to develop new ways to protect consumers, perpetrators continue to look for new ways to commit fraud. Chip cards provide an additional layer of security at chip-enabled terminals, on top of the fraud prevention monitoring we currently provide. As always, your purchases are also covered by  Visa® liability protection, where Fidelity Bank credits your account back from fraudulent charges.

Will chip cards allow others to track my location?

No. Chip card technology is not a locator system. The chip on your card is limited to supporting authentication of card data when you make a purchase.

Is a chip card the same as contactless payment (for example, PayPass, PayWave)?

No. Contactless cards employ near-field communication technology (NFC), which has a radio antenna that transmits account information, and work by waving or tapping your card in front of a device. Chip cards must be inserted face-up into a chip-enabled merchant terminal that allows the chip to make contact with the reader to authorize and complete a transaction. (Remember to keep your card inserted into the terminal while the transaction is processed.)

Do the same benefits come with my chip card that I had with my prior card?

Yes. You’ll continue to enjoy the same benefits with your chip card as you do today with your debit or credit card.

Is my card considered “chip and signature” or “chip and PIN”?

Both “chip and signature” and “chip and PIN” refer to the way a card is authenticated at the terminal. Your card will be authenticated using chip and signature. Chip and signature offers the same cryptographic security as chip and PIN.

While most of the banks in Europe chose chip and PIN authentication, the US market has leaned toward chip and signature in an effort to ease transition by maintaining the current experience of signing receipts. We expect our customers will also appreciate not having to remember a separate PIN in order to complete their transaction. The terminal recognizes that the card is chip and signature and won’t prompt for a PIN, even if it’s used in Europe.

Using chip debit cards

How does a chip credit card work?

It’s easy. If the retailer has a chip-enabled terminal, simply insert your chip card face up in the terminal. The chip card will remain in the terminal while the transaction is processed. To authorize your transaction, just follow the prompts on the terminal as you do today.

You’ll be prompted for a signature to complete the purchase. When traveling internationally, on rare occasions, you may be asked to provide a PIN. Just communicate to the merchant that the credit card requires a signature only. Your card is available to be removed from the terminal once the transaction is completed.

If the retailer is not equipped to read the chip card, just swipe as you do today. For transactions made over the phone or online, nothing changes.

Are there any situations where I could experience issues using my chip debit card?

When traveling outside the U.S., some card readers at unattended terminals (such as public transportation kiosks, gas pumps) will require a PIN. However, this type of PIN technology is different than what you normally use for PIN transactions in the U.S and the card won’t be accepted. In these situations, please locate an attended terminal to complete your transaction or plan for an alternative payment method, such as local currency.

Will my chip debit card still work at an ATM?

Yes. You can continue to use your card as you do today by following the instructions at an ATM.

Are there any additional fees associated with chip debit cards?

At this time Fidelity Bank does not plan to charge customers for a chip card.  If you request expedited replacement of your current card, we may charge a fee for faster delivery.

If I am traveling outside of the U.S. before the chip card is available, can I still use my current card?

Yes, subject to our fraud monitoring and ATM limits, you may continue to use your magnetic stripe card outside the U.S. Please notify us in advance of traveling abroad to better ensure your legitimate foreign transactions are not declined. Magnetic stripe-only cards are still accepted outside the U.S. though some “unattended” kiosks (parking meters, gas station pumps) may take only chip cards. For foreign travel, we recommend that you consider having another method of payment available just in case.

Using chip credit cards

How does a chip credit card work?

It’s easy. If the retailer has a chip-enabled terminal, simply insert your chip card face up in the terminal. The chip card will remain in the terminal while the transaction is processed. To authorize your transaction, just follow the prompts on the terminal as you do today.

You’ll be prompted for a signature to complete the purchase. When traveling internationally, on rare occasions, you may be asked to provide a PIN. Just communicate to the merchant that the credit card requires a signature only. Your card is available to be removed from the terminal once the transaction is completed.

If the retailer is not equipped to read the chip card, just swipe as you do today. For transactions made over the phone or online, nothing changes.

Do I need a PIN to make purchase with my credit card? What is Chip & Signature and Chip & PIN?

No, you do not need a PIN to make purchases with your credit card. The term “PIN” or “Signature” simply refers to how you will authorize the transaction – by entering a PIN or by providing your signature. When using your Fidelity Bank chip credit card, you’ll be prompted for a signature to complete the transaction. When traveling internationally, on rare occasions, you may be asked to provide a PIN. Just communicate to the merchant that the credit card requires a signature only. Fidelity Bank doesn’t currently offer consumer credit cards that include PIN authorization for purchases.

The enhanced security against counterfeiting is contained within the chip itself. The chip makes the transaction more secure by encrypting information when completing a transaction at a chip-enabled terminal. As a result, both Chip & PIN and Chip & Signature offer enhanced security against counterfeiting.

You may request an ATM PIN for cash transactions by calling the number on the back of your card. This PIN is for ATM cash transactions only. This is not the same as Chip & PIN and will not work for purchases.

Are there any situations where I could experience issues using my chip credit card?

When traveling outside the U.S., some card readers at unattended terminals (such as public transportation kiosks, gas pumps) will require a PIN. However, this type of PIN technology is different than what you normally use for cash ATM PIN transactions in the U.S and the card won’t be accepted. In these situations, please locate an attended terminal to complete your transaction or plan for an alternative payment method, such as local currency.

When will I receive a new Fidelity Bank credit card with chip technology?

We are replacing existing Fidelity Bank credit cards with chip cards over time. Each card type has a different schedule for moving to the new technology. We will provide updates to our schedule as they become available.

Are there any additional fees associated with chip credit cards?

There are no additional fees associated with chip credit cards.

 

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What Merchants Need to Know About EMV

EMV, or EuroPay, MasterCard, and Visa, is the global standard for card present processing technology. EMV uses an embedded chip in the card that holds the same cardholder information that is stored on the magnetic stripe and more.

This “smart card” technology provides an additional form of card authentication for the transaction. The additional form of authentication provides better validation of the legitimacy of the payment type being used and helps reduce the use of counterfeit payment cards at retail points of sale.

The EMV chip also helps protect you from card present counterfeit transactions, but not those made with a lost or stolen card. You will still need to ensure you verify the identity of the person presenting the card for payment.

Click on the questions below to learn more about EMV.

What makes EMV different than the traditional magnetic stripe card payment?

EMV is the best existing technology in use today to authenticate cards and cardholders ensuring that a card is not a counterfeit or “cloned” card. The embedded chip generates a one-time value to make each transaction unique – know as dynamic authentication.

Magnetic stripe data is static; the data is the same each time the card is used at all terminals and is easily “cloned.”

What are smart cards?

EMV-enabled cards, or smart cards, have an embedded secured microprocessor chip that stores cardholder data and creates a unique value for each processing transaction.

What are the advantages of EMV technology?

EMV technology contains advanced security features that can help reduce card present counterfeit fraud. It can also offer consumers more convenience and instill greater confidence at the point of sale

When the Visa and MasterCard liability shift occurs in October 2015 for retail businesses and October 2017 for petroleum, pay-at-the-pump businesses, you may avoid the financial liability associated with counterfeit card transactions by being EMV ready.

When do the new liability shift rules take effect?

October 2015 is when the financial liability shifts from card issuers to retail merchants for counterfeit fraud card present transactions, and October 2017 for petroleum pay-at-the-pump merchants, if only the magnetic stripe authentication is used when the card is EMV capable. The table below shows who is financially liable for counterfeit card present transactions based on EMV readiness after the liability shift.

Scenario: Counterfeit
Card Presented
Card Issuer
EMV Enabled
Merchant Acquirer
EMV Enabled
Merchant EMV
Enabled
Financial
Liability
1NoNoNoCard Issuer*
2NoYesYesCard Issuer*
3YesNoNoMerchant Acquirer
4YesYesNoMerchant

*Card Issuer liability remains subject to other Card Network rules.

Will a merchant see any cost savings by becoming EMV-compliant, what is the benefit?

The only cost savings benefit a merchant will receive is reduced losses for counterfeit fraud chargebacks.

How will EMV impact my business?

Customers who are unfamiliar with chip-based cards will need to be trained on how to insert or tap their cards in or over the device. Employees will need to understand these new procedures in order to help customers and explain the security benefits as customers as questions.

Will I still be able to process card payments if I choose not to upgrade or replace my equipment to accept EMV transactions?

Yes. Chip cards will have the embedded microchip and the magnetic stripe. However, you’re subject to the liability shift for card present counterfeit fraud transactions.

How do I know if I have an EMV-enabled terminal?

An EMV-enabled terminal will have a slot where the smart card can be inserted, a contactless radio frequency reader or both. Below is a list of terminal types and if they are EMV compliant.

Terminal TypeIs Hardware EMV Compliant?
Ingenico ICT 220Yes
Verifone VX520Yes
Verifone VX680Yes
Zon JrNo
Verifone VX570No
Verifone VX510No
Trans 380No
Trans 460No
Tranz 330No
T7 PlusNo
TalentoNo
T-IPPNo
T4220No
Omni (all types)No
NuritNo
WebPassCard readers are currently being developed
MobilePassCard readers are currently being developed
MultiPassCard readers are currently being developed
DialPayCard readers are not available. Card not present
transactions do not require EMV compliance.
Card present transactions do require EMV
compliance. If you conduct card present transactions
you should consider purchasing a terminal.
Third Party SoftwareCheck with your vendor to determine if the
software and hardware is EMV compliant

If I have an EMV capable terminal, do I need a new application download to enable EMV acceptance?

Yes. You’ll need to download a new application to read smart cards on EMV capable terminals.  You will be receiving a letter notifying you of when and how this download will be performed.

What makes a terminal EMV ready?

There are two components—the terminal device and the application it uses to read the card. EMV certified terminals have the ability to communicate with the chip card via contact or contactless. The application drives the device, allowing it to authenticate the chip card and cardholder.

Will there be new interchange categories for EMV capable cards?

Not at this time. The card brands have not announced any new interchange categories for EMV card acceptance, so the transactions will qualify at the current rates.

What chargeback, or disputed transaction, codes are currently associated with EMV?

With EMV, the Associations will have new chargeback codes. For Visa, a 62 code is for a Counterfeit Transaction dispute and an 81 code for Fraud, Card Present. MasterCard also has two codes. For Counterfeit Fraud, you will see a 4870 code, but a never-received-as-issued (NRI) fraud dispute will be a 4871 code.

What if I accept face to face transactions using a computer or an Internet payment gateway (virtual terminal)?

While there are a few virtual terminal card readers on the market, manufacturers continue to develop “future-proof” EMV-enabled devices. As the liability shift date approaches, Fidelity Bank will provide more information as it becomes available.

What does EMV migration mean for card not present (CNP) merchants?

As EMV technology is adopted in the card space, it’s expected that fraud will also shift to the least secure channels, including CNP. From an online fraud perspective, it’s important that CNP businesses be prepared for this anticipated shift. Strategy is key, and it’s essential that you take the extra measures to know good customers and good customer behavior beyond just Address Verification Service (AVS) and Card Validation Values (CVV).

Consider strengthening the value of these tools by supporting additional technology, such as CAPTCHA, a program that is designed to tell humans apart from computers automatically, to help mitigate fraudulent activity.

How will EMV requirements impact mobile card acceptance?

The EMV liability shift affects all card present transactions. So, there is no distinction made if you accept cards using a smart phone or tablet.

What if I process payments and allow my customers to get cash back? Are there differences in EMV requirements?

There are no unique EMV requirements for cash back transactions. However, the same liability shift applies like all other card present transactions.

To be EMV ready, do I need to be able to support chip and PIN, chip and signature and near field communication (NFC), or contactless payments?

The card brands vary on their requirements, but to be fully prepared, you will want an EMV device that can process chip and signature.

If I am fully EMV enabled, do I still need to be Payment Card Industry-Data Security Standards (PCI-DSS) compliant and incur PCI-DSS related validation fees?

Yes. PCI-DSS compliance is mandatory for all merchants.

Are there any best practices for EMV migration?

  • Do your research in advance. As equipment upgrades have the potential to be both costly and time-consuming, it’s best to get started early. Figure out how much it’s going to cost, how long it’s going to take and plan accordingly. Also, when planning how to update your systems to support this change, take a look at the cost versus benefits of EMV.
  • Training and product awareness at both the business and employee level is crucial to a successful implementation. As EMV acceptance is very different from the traditional magnetic stripe (the card is inserted into the terminal as opposed to swiped, for example), it’s important that everyone is familiar with the new requirements to make the customer experience as smooth as possible.
  • Don’t wait until the last minute to migrate. You may begin to feel the pressure once the EMV card migration starts to reach its critical mass—with issuing banks beginning to issue chip cards to new and existing customers. Businesses that have not already migrated to EMV may have to answer to their customers as to why they have to continue to swipe their new chip cards—especially when the market presents chip technology as the safer way to pay.

What can I do now to prepare?

Contact us at (919) 552-2242 and ask to speak to a Business Solutions representative. We can help you assess what a chip card payment migration plan would look like for upgrading or replacing all consumer facing POS devices.

How do I order an EMV ready terminal?

Complete the easy form below to submit a request for an EMV ready terminal. A special rate of $200.00 per terminal is being offered to existing merchants who are upgrading to a new EMV-enabled terminal. 

A Fidelity Bank representative will contact you if they have any questions.

  • Customer authorizes Fidelity Bank to debit the checking account that is tied to their Merchant account for full payment of requested terminals. The debit will post on the 20th of the month following the month of request

 

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