December 6, 2022
Alipio Umiten IV

EMV Compliance: Every Restaurant Needs to Know About

Managing employees, ensuring that products and services are up to par, and keeping up with restaurant industry trends is challenging for any restaurant business. It can be tough to stay on top of everything. But if there’s one thing you should ensure you’re up-to-date on, it’s EMV compliance. Failure to do so could mean big trouble for your restaurant business.

So what is EMV compliance exactly? And more importantly, why do you need to know about it? Keep reading to find out!

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What Is EMV Compliance?

EMV compliance is a set of standards that define how payment cards and terminals must work together to process EMV chip-based transactions. The standards are jointly defined and managed by EMVCo, an organization representing the interests of the major card schemes, including Visa, Mastercard, American Express, JCB, UnionPay, and Discover.

To be EMV compliant, a card must have an EMV chip that stores information needed to authenticate the card and process transactions. The terminal must also be able to read data from the chip and communicate with the card during the transaction.

Is EMV Required for PCI Compliance?

No, EMV is not required for PCI compliance. However, using EMV-compliant terminals can help reduce the risk of fraud and make it easier to comply with PCI DSS requirements.

For example, many EMV-compliant terminals are equipped with point-to-point encryption (P2PE) capabilities, which can help secure cardholder data and make it more difficult for criminals to access or misuse.

Some EMV-compliant terminals can also generate dynamic security codes (DSCs), which are one-time use codes unique to each transaction and can help prevent counterfeit card fraud. If your terminal does not support these features, you may need to take additional steps to secure cardholder data and ensure PCI compliance. Please consult your bank or payment processor for more information.

EMV Compliance Tips

When considering EMV compliance, there are a few key things to remember. Here are five tips to help you get started:

  1. Understand the requirements. The first step to compliance is understanding the requirements. Review the latest guidance from card brands and acquirers to ensure you know what’s expected of you.
  2. Get certified. Once you’ve reviewed the requirements, it’s time to get certified. You’ll need to work with an EMV-certified provider to get started.
  3. Test, test, test. Before you go live with your EMV-enabled system, it’s crucial to test it thoroughly. Work with your provider to run a series of tests to ensure everything works.
  4. Stay up to date. The EMV landscape is constantly changing, so it’s important to stay current on the latest developments. Be sure to review the newest guidance from card brands and acquirers regularly.
  5. Be prepared for fraud. Even with EMV in place, fraud can still occur. Be sure to have a plan in place to deal with fraudulent transactions.

Following these tips will help you get started on the path to EMV compliance. By taking the time to understand the requirements and getting certified, you can help ensure a smooth transition to the new standard.

EMV Compliance Law

Despite the name, EMV compliance is not a law that businesses must comply with. It is an industry-specific mandate, not a “law” in the legal sense. However, the consequences of not being EMV compliant can be severe.

If a business does not support EMV chip cards and their customers use them anyway, the business could be held liable for any resulting fraudulent charges. This has led many businesses to switch to EMV-compliant terminals and point of sale systems.

EMV compliance is an important step in protecting your business from fraud. If you still need to do so, consider switching to EMV-compliant terminals and restaurant POS systems.

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EMV Compliance for Restaurants

As a restaurant manager/business owner, you’re probably aware of the importance of compliance with the EMV chip card standard. After all, non-compliant businesses can be held liable for fraudulent charges made with counterfeit cards.

But what you may not know is that there’s more to EMV compliance than just installing a chip card reader. To be fully compliant, your restaurant must also have policies and procedures to ensure that all transactions are correctly processed.

Here are some things to keep in mind as you work on becoming EMV compliant:

  1. Make sure your staff is trained on how to use the new chip card reader.

This might seem like a no-brainer, but it’s essential to ensure that everyone who needs to use the reader knows how it works. Otherwise, you run the risk of processing transactions incorrectly and facing liability for any fraud that occurs.

  1. Implement procedures for handling declined transactions.

One of the most common issues with EMV compliance is declined transactions. This can happen for several reasons, including an incorrect PIN being entered or a card being misread. Whatever the reason, it’s important to have a procedure in place for handling declined transactions to minimize the impact on your business.

  1. Be prepared for chargebacks.

Another potential issue with EMV compliance is chargebacks. A chargeback happens when customers dispute a charge on their credit card statement. If you’re not prepared for chargebacks, they can be a major headache for your business.

  1. Keep an eye on your processing fees.

One of the downsides of EMV compliance is that it can sometimes lead to higher processing fees. Verifying a chip card’s authenticity is more complex than swiping a magnetic stripe card. As a result, you might see an increase in your processing fees when you switch to EMV.

  1. Review your insurance coverage.

Finally, review your insurance coverage to ensure that you’re still adequately covered in the event of fraud or other losses related to EMV compliance. Your restaurant’s insurance policy should be able to help you determine if you need any additional coverage to protect your business.

EMV and PCI Compliance

As the world increasingly moves toward a cashless society, businesses must take extra steps to ensure the safety of their customers’ information. Two compliance standards that have become essential for businesses are EMV and PCI.

  • EMV, which stands for Europay-Mastercard-Visa, is a global standard for credit and debit card payments. It requires that businesses use chip-enabled cards and terminals to process payments. This added layer of security makes it more difficult for criminals to counterfeit cards and commit fraud.
  • PCI, or Payment Card Industry compliance, refers to a set of security standards businesses must follow to accept credit and debit card payments. These standards are designed to protect customer information and prevent credit card fraud. All major credit card companies require PCI compliance, and businesses that do not comply can face steep fines.
Businesses that accept credit and debit card payments must ensure that their customers’ information is safe. EMV and PCI compliance are two essential standards businesses must meet to protect customer data.

Why Is EMV Compliance Important for Restaurants?

As a restaurant owner, you know that compliance with various regulations is vital to protect your business. EMV compliance is no different.

EMV compliance is important for restaurants because it can help prevent fraud. When customers pay with an EMV-compliant card, their information is encrypted, making it much more difficult for criminals to steal their data. In addition, EMV compliance can help you avoid liability in the event of a data breach.

Frequently Asked Questions About EMV Compliance

If you’re wondering whether or not you need to upgrade your equipment to accept EMV payments or have other questions about this new standard, read on for answers to some of the most frequently asked questions about EMV compliance.

What Is EMV Security Standard?

EMV Security Standard is a set of global standards for credit and debit card payments developed by Europay, Mastercard, and Visa. The key feature of the EMV standard is the use of chip-based technology to store and transmit account data, making it more difficult for criminals to counterfeit cards or perform “skimming” attacks.

Why EMV Is Used?

One of the main reasons EMV is used is to combat fraud. In the past, criminals could copy information from the magnetic stripe on a credit or debit card and use it to create a counterfeit card. However, with an EMV chip, the information is encrypted, making it much more difficult to copy.

Additionally, each time an EMV chip card is used for payment, the chip creates a unique transaction code that cannot be used again. This makes it difficult for criminals to use stolen data to make fraudulent purchases.

What Happens If You Don’t Have PCI Compliance?

You could be subject to some pretty hefty fines if you’re not PCI compliant. The Payment Card Industry Security Standards Council (PCI SSC) can levy fines of up to $500,000 per data breach. And suppose you’re not compliant, and a data breach does occur. In that case, you could also be on the hook for associated costs, like credit monitoring for affected customers or litigation expenses.

But it’s not just about the money. If you’re not PCI compliant and there is a data breach, your reputation will also likely take a hit. Customers may no longer want to do business with you if they don’t feel their information is safe. And once word gets out that you’re not PCI compliant, it can be difficult to regain the trust of your customers and the general public.

Is EMV the Same As RFID?

No, EMV is not the same as RFID. EMV is a type of credit card that uses an embedded chip to store data, while RFID is a type of technology that uses radio waves to communicate between devices. While both restaurant payment technology can be used for contactless payments and mobile payments, they are not interchangeable.

Are Stores Required to Have Chip Readers?

No, stores are not required to have chip readers. However, If a store does not have a chip reader and accepts credit cards, the store may be liable for any fraudulent charges that will occur.

This liability shift is one of the key reasons why stores are encouraged to invest in chip readers. Additionally, many credit card issuers are now offering incentives to stores with chip readers, so investing in one may be in a store’s best interest.