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5 Things Contractors Should Know: Accepting a ‘Chip’ Card

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5 Things Contractors Should Know: Accepting a ‘Chip’ Card

The EGIA Contractor Marketplace boasts a number of partner companies, each offering exclusive discounts on some of the products, services and equipment successful contracting companies use every day. That includes Service First Processing, who has partnered with EGIA to offer contractors a few helpful hints on chip cards — tips that can help whether you’re using Service First and EGIA or not.

Get the “Chip” off your shoulder and put it to work for your company . . . 5 important things to understand about accepting Chip Cards

EMV, which stands for Europay, MasterCard and Visa, is the fraud-reducing technology behind that tiny microchip that’s showing up on new credit and debit cards everywhere in the U.S.

This little chip has huge benefits when it comes to protecting against fraud for card-present transactions. Conversely, this little chip can expose your company to significant labiality if you are not processing credit card transactions correctly.

What is EMV?
EMV helps protect issuers, merchants and consumers against losses from the use of counterfeit and lost or stolen payment cards at the point-of-sale. It offers better data security than magnetic stripe transactions and makes counterfeiting a card next to impossible. EMV cards are embedded with a microprocessor that turns the card into a smart card and enables it to communicate secure EMV transaction data to an EMV terminal.

How does it work?
This chip technology adds layers of security against fraud and is virtually impossible to duplicate. At the moment of transaction- when the cardholder is most susceptible to fraud- an EMV cryptogram is what keeps sensitive data away from cyber-thieves.

How does this affect my company?
October 1, 2015 marked a major milestone where the fraud liability shifted to merchants for all point of sale devices. After October 2015, if a fraudulent transaction occurs, the liability belongs to whichever party has not yet adopted EMV chip technology. This means that the issuing bank or merchant could end up being financially responsible for the fraudulent transaction if they aren’t EMV-ready (except Automated Fuel Dispensers). Liability shifts for Automated Fuel Dispensers begins in 2017.

What kind of transactions are affected by EMV?
The transition toward EMV technology and the liability shift only affects card present transactions. Online and over the phone transactions, on the other hand, are not directly affected by EMV, in these cases, the liability remains subject to existing liability and chargeback rules.

How can I avoid liability from EMV changes?
1. Stay One Step Ahead of Card Issuers. Card issuers already plan to have chip cards in consumers’ hands by the end of 2015 and once consumers start using those cards, merchants with non-EMV-ready terminals will start taking on the liability.
2. Upgrade & Process Transactions Using an EMV Compatible Device. Having an EMV compatible terminal is just the foundation for EMV; merchants will actually need to process transactions using EMV whenever possible to truly avoid liability. As an EGIA Member you have access to the SFP processing program which provides a no cost EMV upgrade.

Below are three different scenarios to help clarify who retains liability on a given transaction:

Scenario 1
A traditional magnetic stripe card is swiped by the customer at a magnetic stripe terminal.
In this case, neither the issuing bank nor the merchant is EMV-ready. If the purchase is a fraudulent transaction, the merchant is generally not liable, just like today.

Scenario 2
A chip card is used at a traditional magnetic stripe only terminal.
In this case, the issuing bank is EMV-ready but the merchant is not. If the purchase is a fraudulent transaction, the merchant is generally liable, since the issuer has made the investment to upgrade to chip technology and the merchant has not.

Scenario 3
A chip card is used at a chip-enabled terminal.
In this case, the issuing bank and the merchant are both EMV-ready. If the purchase is a fraudulent transaction, the issuer will continue to bear the responsibility of the fraudulent activity, as they do currently.

For Questions about EMV or information about the Service First Processing – EGIA Member Program,
Call 855-632-9862, www.sfprocessing.com/egia or visit the EGIA Contractor Marketplace.

NFL Legend Ray Lewis to Headline Contractor Leadership LIVE

In September, EGIA and Contracting Business are teaming up to launch the new, best contractor conference in the industry: Contractor Leadership LIVE. The entire CLL experience is predicated on giving contractors access to the best educators, workshops and insights to help grow their business. That includes speakers who are both longtime industry luminaries as well as those who, even if not contractors by trade, are able to bring to the event excitement, motivation and a track record of teambuilding and preparing for greatness. With that in mind, we’re proud to announce the final keynote speaker of the week: the legendary Ray Lewis.

One of the greatest players in NFL history, Ray started at middle linebacker for the Baltimore Ravens for 17 seasons, racking up 13 Pro Bowl selections, 2 NFL Defensive Player of the Year awards and 7 First Team All-Pro designations. He reached the peak of his sport twice, leading the Ravens to championships in Super Bowls XXXV, for which he was named Super Bowl MVP, and XLVII.

While Ray Lewis is known as one of the greatest leaders to ever step foot on the gridiron – hailed for his fiery motivational speeches that inspire teammates and fans alike – as well as a proven champion who knows what it takes to get the most out of those around him, he’s no stranger to our industry. Ray’s Power52 Foundation provides an employment training program for at-risk young adults, returning citizens and military veterans residing in Baltimore and the surrounding area, preparing them for careers in the solar industry and other green jobs. Ray isn’t just someone who knows how to prepare for greatness, he knows how to take that successful mindset and apply it to the home services and utility industries.

Ray Lewis will take the stage at Contractor Leadership LIVE in Cleveland — the new, best contractor conference in the industry — on September 14, bookending the event’s two-and-a-half days of valuable insights and business-changing education. He joins a roster of renowned industry speakers drawn from EGIA Contractor University’s dream team faculty, including Weldon Long, Gary Elekes, Ellen Rohr, Mark Matteson, Brigham Dickinson, Drew Cameron, James Leichter and Peter Troast.

Visit ContractorLeadershipLIVE.com to learn more about the hotly anticipated new event. If you’re an EGIA member, the free conference registrations and hotel stays that are included with your membership can be used for Contractor Leadership LIVE!