What is Up With That Chip? Commonly Asked Questions About This Technology, Answered : Part 1
A full 70% of all Americans have at least one credit card, but thanks to some new credit card software, the cards we are used to are looking a little bit different.
The majority of credit card companies are in the process of changing — or already have changed — their payment gateway platforms to ones with EVM technology. Also known as the chip, this new credit card microchip can cause a bit of confusion. To ensure you know everything there is to know about EVM credit card processing platforms, here are some common questions about the service, answered.
The goal of the United States is to completely transfer our payment processing industry to EVM.
Why are we making the switch?
Simply put, the United States government is trying to cut down on fraudulent purchases. The magnetic stripe that is on our credit cards now is not properly protected, making it that much easier for crooks to gain access to our sensitive information. Not only will this technology make purchases more secure for customers, it will ensure companies are practices the best techniques to protect themselves.
How will EVM protect the merchant?
Previously, when a swipe card was accessed and money stolen, all responsibilities fell on the consumer’s bank. But now, if someone pays with a fraudulent chip card, the merchant will be held accountable — if they do not have EVM credit card processing software. This liability shift was put in place as a way to ensure merchants provide the most secure card readers for their consumers.
Why do EVM transactions take so long?
We all know the EVM credit card processing time is a bit slower than swipe cards. This is because the card is busy communicating with the server to ensure you are the right person and using the right PIN. While frustrating, this is all for your protection.
Is EVM new?
To the United States, yes. But this has been the standard of payment for the majority of the world for decades now. The biggest reason the United States has not implemented this security feature is because of the cost, as it is predicted to cost upwards of $12 billion dollars for the entire nation to switch over.
There are plenty more questions to be answered about EVM chip reading technology. Check back on our blog soon for our next FAQ post.