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How Visa's Recent EMV Chip and CVV2 Changes Will Impact Brick and Mortar Merchants

10/03/2017  |  By: Stewart Fey, Director of Technical Services

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Ever since the EMV Chip technology was put into place in 2014, credit card companies have continued to evolve their acceptance processes to ensure the greatest level of protection possible for their customers. Recent changes from VISA regarding manual key entry and CVV2 at point-of-sale are the latest iteration of those changes.

Two Significant Point-of-Sale Changes for Merchants with EMV Chip Devices  

With more and more merchants using EMV chip devices, Visa is making two significant changes that are important for merchants to know:

1. Merchants are no longer required to support manual key entry.

Prior to EMV chip technology, merchants were required to be able to enter an account number into the system if the magnetic strip failed. However, because most customers now carry cards with EMV chip technology, merchants now have two methods (chip and magnetic strip) for reading cards.

Because of this, offering manual key entry is optional for merchants with functional EMV chip acceptance devices. If neither the chip nor the magnetic card work, it is highly possible that the consumer is trying to commit fraud.

Takeaway: If you have an EMV chip reading device, offering manual key entry is optional. If you don’t have a chip reading device, manual entry is still required.

2. Merchants can no longer require CVV2 for card-present transactions.

The other important change related to EMV chip requirements relates to in-person points-of-sale systems. In the past, merchants could ask for the CVV2 number as an added security feature. Because of the added security of the EMV chip, asking for the CVV2 number during card-present interactions is no longer necessary. However, using CVV2 authentication is still acceptable for sales when a card is not present.

Takeaway: When customers are paying for purchases, you can no longer ask them for the card and manually input the CVV number on the back of the card.

Are You Abiding by These Rules?

Visa’s new regulations went into effect in April of 2017.

While adopting these new regulations don’t directly impact your PCI compliance, it is important to ensure your locations have the proper measures in place. If you accept credit cards, you need to be mindful of PCI compliance and EMV rules.

If you have any questions about how you can accurately adopt these changes or want to discuss how to ensure your company is PCI compliant, we can help.

Contact our team today, or use our automated system to take the first step toward PCI compliance today.

Posted in: Security Consulting
Tagged with: Visa, EMV Chip, CVV2
How Visa's Recent EMV Chip and CVV2 Changes Will Impact Brick and Mortar Merchants

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