What are chip-enabled EMV® payment cards?

Plastic. The credit card world is full of plastic and always changing. The latest plastic card, the EMV payment card, will soon be introduced into the United States. The EMV card is widely accepted in European countries and is commonly referred to as a chip card. The chip within the card stores cardholder and application data more securely than traditional cards, and the technology provides protection against counterfeit card-present fraud.

The EMV card will start being accepted in some areas as early as the first quarter of 2015.

Here is some basic information about the EMV Card:

What is the EMV Card?
EMV stands for Europay, MasterCard, and Visa, and is commonly referred to as a chip card used for payment technology.

Why should consumers use the card, and why should merchants accept them?
The chip within the card stores cardholder and application data more securely, and the technology itself provides protection against counterfeit card-present fraud. The card appears flat. Chip cards issued today contain a magnetic stripe and will until 100% of the world is EMV capable and chip cards are the only accepted card solution.

What is the purpose of the chip card?
EMV cards are called chip cards because they have a small micro-processor, or mini computer in them. Data on the chip is accessed interactively, and the chip requires specific responses from a card terminal in order to reveal its information. This makes cloning of cards significantly more difficult for criminals.

Ultimately, EMV will help in protecting personal data in a card present environment better than a magnetic stripe card.

A Note to Merchants:
Some current credit card terminals will not be able to accept the EMV card. Manual processing may still be done, but a new terminal that is EMV capable will ease the acceptance of these cards.

There is no immediate rush to replace your current terminal, but we can help with equipment solutions when you are ready to upgrade. During the last year many merchants have replaced equipment and were upgraded to the EMV card acceptance capability.

Please beware that phone calls are being made to some merchants indicating that you will not be compliant with the credit card standards in the 2nd quarter of 2015. Merchants who process through Iowa State Bank should contact their bank prior to making any decisions regarding new terminals. “Merchants who process with Iowa State Bank find that we are here to assist you with equipment and the required annual PCI-PSS compliance for all credit card acceptances,” reminded Grace Freeburg, Assistant Vice President – Consumer Banking. “Community banks like Iowa State Bank are a great resource for consumers and merchants alike; we are here to help our local businesses be successful. We hope that you will contact us when you have questions,” stated Freeburg.

These tips are provided by Iowa State Bank. If you have specific questions, contact your local banker at Iowa State Bank. Iowa State Bank is an Equal Opportunity Lender. Member FDIC.

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