From Magstripe to EMV – How Transactions Will Change

cardshands-img2015 looks to be the year that we fundamentally change how we pay for things with plastic–something that hasn’t happened since credit went mainstream in the early 50s thanks to the Diners Club Card. In 2015, merchants that want to protect themselves from fraud liability will have switched over from traditional mag-stripe only payment devices, to newer devices that accept cards with chips embedded in them and that adhere to the EMV standard, which is predominant around the world outside of the U.S.

But this change in how we pay also comes with substantial changes in the way the payment transaction occurs; at the terminal, across the communication medium and at the host processor location. The graphic below illustrates the process for completing a traditional mag-stripe transaction as compared to an EMV Contact and EMV Contactless transaction.

Suffice it to say, there’s a lot of work currently ongoing to comply with the 2015 liability shift. The good news is, all of this work is on the backs of terminal developers, gateway software vendors and processors. All merchants have to do, is upgrade to the EMV capable equipment. And of course, VeriFone can help there.

If you would like to download this illustration, you can do so from Slideshare.

About Chris Souther

Digital Marketing & Social Media Manager After spending four years in the U.S. Air Force as a telecommunications technician, Chris shifted gears and started focusing on a career in Marketing & Communications, where he has been lucky enough to work with some of the world’s best known brands. Chris currently manages Analyst Relations and Content & Social Media marketing here at VeriFone. If you communicate with us over Facebook, Twitter, Google + or Linkedin (or Pinterest, or Instagram etc.), you’re probably talking to Chris.


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