Ac­quir­ers, Pro­ces­sors Tar­get EMV’S Lag­gards

The EMV li­a­bil­ity shift took ef­fect two years ago. So why are many mer­chants still drag­ging their feet on up­grad­ing their se­cu­rity?

ISO & Agent - - INSIDE 11/12.2017 - BY JOHN ADAMS

The U.S. EMV li­a­bil­ity shift took ef­fect two years ago, so why are some mer­chants still putting off their adop­tion of chip-card se­cu­rity — and what con­vince them to fi­nally sup­port EMV?

While the EMV fraud li­a­bil­ity shift for most com­pa­nies passed two years ago, there are still pock­ets of stores that haven’t switched over — and they can be par­tic­u­larly prone to the kind of fraud chip cards are de­signed to thwart.

EMV is de­signed to be re­sis­tant to coun­ter­feit­ing, and the Oc­to­ber 2015 li­a­bil­ity shift is a con­se­quence the card net­works im­posed on com­pa­nies that did not make the switch. Some com­pa­nies con­sid­ered the fraud risk to be less than the cost of up­grad­ing; oth­ers had to wait on cer­tain ven­dors to sup­port the tech­nol­ogy; and cer­tain cat­e­gories such as restau­rants and gas sta­tions had is­sues that worked against sim­ple up­grades (the card net­works even gave gas sta­tions an ex­ten­sion).

Thus, two years af­ter the EMV card standard should have gone into ef­fect in the U.S., the coun­try is still very much re­sist­ing the change.

“There are still a lot of stores out there that don’t have EMV,” said Ken Paull, CRO at Bos­ton-based ac­quirer Cayan.

Cayan re­cently re­ceived chip card cer­ti­fi­ca­tion from the pay­ment pro­ces­sor World­pay, which can help Cayan reach small busi­nesses through its Ge­nius cloud-based pay­ment gate­way. While EMV cer­ti­fi­ca­tion an­nounce­ments come fre­quently from across the pay- ment in­dus­try, World­pay, which is in the midst of be­ing ac­quired by Van­tiv, has a num­ber of pro­grams in sec­tors where EMV use still lags.

“The EMV con­ver­sions are mov­ing down the pyra­mid so to speak,” Paull said, adding the strag­glers in­clude small to medium-sized busi­nesses and some restaurant seg­ments. “Full- ser­vice restau­rants in par­tic­u­lar haven’t con­verted due to the slow growth of pay-at-ta­ble so­lu­tions. There hasn’t been a whole­sale adop­tion of pay- at-ta­ble tech.”

The World­pay pact will also al­low Cayan to reach mer­chants that are look­ing for faster EMV pay­ments ex­e­cu­tion, which would give Cayan a chance to sell its Ge­nius Chipiq ser­vice that pro­cesses chip card trans­ac­tions in 4 sec­onds. World­pay re­cently added sup­port for faster EMV ex­e­cu­tion prod­ucts from Master­card and Visa, con­tend­ing a “tra­di­tional” EMV check­out can take as long as 20 sec­onds.

“World­pay is very well po­si­tioned in some of these ver­ti­cals,” Paull said. “They have been very suc­cess­ful in cre­at­ing a mar­ket seg­ment and we have had strong de­mand for Ge­nius in these seg­ments.”

The World­pay cer­ti­fi­ca­tion is the lat­est in a se­ries of moves Cayan has made on the fron­tier of dig­i­tal pay­ments, to reach in­dus­tries that are ei­ther not us­ing chip cards or don’t ac­cept cards at all.

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