What Hawaii Small Business Owners need to know about the EMV Chip Card Deadline in 2015


April 15, 2015 Facebook Twitter LinkedIn Google+ Financial Service


What’s EMV Smart Chip?

EMV chip smart cards have a small computer chip embedded in them. This chip generates a one-time unique code for each transaction. It is similar to the chip found in MasterCard and Europay. This small computer chip makes EMV chip cards safer than traditional magnetic-stripe cards.

How is it used

The cards are either “dipped” into a slot on the terminal for contact-based transactions, or “tapped” on the terminal in contactless transactions similar to Apple Pay and Google Wallet. In both cases, you will be required to sign in using your username and password before you can transact.

All Hawaii business owners are expected to have switched to the new EMV POS terminals by October 1, 2015.  After that date, the liability of fraudulent transactions will shift from the card issuing institution to the business owner.

Hawaii Deadline for shifting

All Hawaii business owners are expected to have switched to the new EMV POS terminals by October 1, 2015. After that date, the liability of fraudulent transactions will shift from the card issuing institution to the business owner. But if the fraud occurs after the merchant upgrades to EMV-compliant equipment, the bank (issuer of the debit card) takes liability. However, there will be no penalty to merchants who will fail to shift to the EMV-enabled terminals, but they will have to bear the risk of continuing to transact using magnetic-stripes.

Is there any training required?

EMV cards transactions differ greatly from the swiped magnetic-stripe transactions. This means some little training will be necessary. For example, the cards must stay dipped in the terminal slot for the entire transaction duration. When the card is removed from the slot, the transaction will be terminated.

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