As October 1st approaches, industry buzzwords like “EMV”, “Chip & Pin”, and “liability shift” are coming up more and more. With that in mind, we wanted to take a moment to update you on credit card processing within Ascend.
What the heck is happening in the United States on October 1, 2015?
Today, the liability for fraudulent card-present transactions generally falls on the issuing bank or payment processor. In October, the liability will shift to the “party that is least EMV compliant.” So, if a customer has a Chip & Pin or Chip & Sign capable card, and a charge is processed as Swipe & Sign, the merchant will be held liable if the charge is deemed fraudulent.
Will new cards be issued to all consumers before the deadline?
No. Credit card companies have begun phasing-in chip-capable cards within the last year and will continue to do so as cards expire in the future. It will likely be years before all existing Swipe & Sign cards are completely removed from circulation. A recent story on NPR stated an estimated 30% of consumers currently have at least one card with a chip.
Am I going to be able to integrate with a payment processor other than Chase Paymentech?
No. Our current priority is ensuring all retailers who currently integrate Chase Paymentech with Ascend are EMV-capable before October. We are using this opportunity to review options for expanding our selection of integrated processors, but there are no changes planned at this time.
Am I going to have to buy new equipment to accommodate this change?
If you want to be EMV-compliant by October 1st, yes. We are currently reviewing several options and hope to finalize the supported device(s) in the upcoming weeks. Security, price point, features and adaptability (future-proofing) are all being taken into consideration. We’ll communicate pricing as soon as we can so you can budget accordingly.
If you’re not concerned about the liability shift, no. Your current hardware will continue to work. Eventually, we will retire support for the existing hardware and you will have to replace it.
When will I be able to process mobile payments like Apple Pay?
We haven’t set a date for this. Our primary focus is getting up to speed with the EMV requirements before October. We are reviewing options for NFC payments (like Apple pay) and Signature Capture, but those solutions will likely be released after Ascend is EMV-capable. We are making sure that the device we select will support these functions.
Are there any changes planned for Ascend retailers who operate outside of the United States?
No. We are reviewing options for chip support in Canada, but there is no date set for this.
Stay tuned to the blog for more updates on this topic. Next week, we’ll get back to highlighting new features in our upcoming Spring 2015 release.