Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 326 OCTOBER 2016 • FOGHORN FOGHORNFOCUS: SECURITY C redit cards have been an integral part of business for decades and will continue to be for the foreseeable future. Rising fraud and theft have called for a change of policy to resolve plaguing issues. Europay, MasterCard, and VISA, or EMV for short, policies are now in effect in the U.S. with the goal of reducing credit card fraud, and thus reducing costs to issuers and merchants alike. To accomplish this goal, the antiquated magnetic stripe, or “magstripe” technology is being replaced by EMV technology. EMV technology consists of a microproces- sor, or chip, embedded in the credit card and the equipment used to com- municate with the chip. What’s New? The difference in the security features of magstripe and EMV is sig- nificant. Whereas magstripes store un- changing, or static data, on the credit card, EMV chip cards use changing or dynamic data and use the chip to store this data. Static data is easily copied or “skimmed” via devices placed on legitimate card readers that are not monitored, such as gas stations and some ATMs, and used for fraudu- lent transactions. The dynamic data of EMV cards, however, are a unique transaction number that can only be used once. Each time an EMV card is used at an EMV-enabled device, the chip card will receive a new unique private key, eliminating the ability to reuse copied data in fraudulent trans- actions. Chip cards will continue to carry the magstripe until all process- ing equipment is EMV capable. As of October 2015, fraudulent transactions liability, in certain cases, has shifted to merchants, including passenger vessel operators. This EMV Liability Shift affects all merchants that operate in a card-present environment. Any merchant that has not replaced or upgraded their processing solutions to be EMV compliant, which is the ability to accept “chipped cards” via a chip reader, open themselves up to unnec- essary risks, purchase disputes, and reversed transactions. Transition Planning Many questions persist in the EMV migration process. Is there an immediate solution, or an upgrade path to EMV offered by the solution provider? Can devices already in use support EMV? Is the software and hardware EMV-certified for use? What is the cost of migrating to EMV? Getting these questions answered can be confusing, but making it a low priority is a mistake. The benefits of becoming EMV-compliant far outweigh any potential issues. Creating a plan for a successful path to EMV compliance, careful analysis, planning, and execution is required by all involved parties, including credit card processors, vessel operators, and various processing solutions from point of sale (POS) systems to counter- top terminal manufacturers. Analysis of current operating procedures, how EMV will impact those procedures, operational changes that may be needed to implement EMV, and costs are necessary. You should work with Securing Your Business Through Credit Card Processing By Chris Reckert, ePaymentAmerica CONTINUED ON PAGE 8