No other processors have announced non-compliance fees yet. Presently, the Vantiv-owned processing company NPC is charging what it refers to as “EMV non-enabled” fees to customers who aren’t using EMV terminals at their businesses.
We’ll update this article with new information as it becomes available, so be sure to follow us on Twitter or Facebook for updates.Īnother thing we may see more of in the future is EMV non-compliance fees, or fees charged if you don’t have EMV compliant equipment. For more details, check out this introduction to Chase Pay.Īs for EMV, It’s possible that in the future, chip cards run using the magnetic strip instead of ‘dipping’ the card to use the chip will incur higher cost, but that is not the case as of spring 2016. Chase Pay may be able to eliminate the typical interchange structure when customers make a purchase using Chase Pay.
The company has plans for a lower cost mobile payment option, which it can offer because of a unique deal with Visa where Chase leases the Visa network. One possible exception regarding cost is Chase Pay. NFC in-app purchases are considered “card-not-present” transactions, and your card-not-present/ecommerce pricing will apply. NFC payments made with a mobile phone in-store by ‘tapping’ the phone to an NFC-capable terminal are considered “card-present” transactions. There are many components to credit card transaction fees but for the time being, EMV and NFC payments don’t change anything cost-wise.
There are currently no repercussions for not accepting NFC payments like Apple Pay.
Businesses that don’t have an EMV compliant machine are liable for fraudulent transactions made with EMV chip cards. (An NFC/EMV reader is available, but it doesn’t take traditional magnetic stripe cards.)īoth EMV and NFC payment methods are more secure than an unencrypted magnetic strip, but only EMV cards are subject to the fraud liability shift that went into effect in October of 2015. Square, for example, has a mobile credit card reader that accepts magnetic stripe cards and EMV cards, but not NFC payments. Many newer terminals allow you to accept both NFC and EMV payments, but it’s important to note that some machines only take one or the other. The NFC chip in mobile phones can also be used for contactless chip cards, and the encryption that protects payment information on both is the EMV standard. NFC stands for near-field communications, and is the technology that allows data to be read by compatible machines without contact.Īlthough NFC is most often associated with mobile phone payments and EMV is most often associated with chipped cards, both technologies can actually used in both payment options. The two buzzwords you’ll hear in discussions of chip credit cards and phone payments are EMV and NFC.ĮMV stands for Europay, MasterCard, Visa, and is a security standard for the chips embedded in credit cards vs the magnetic strip. So what’s the difference between EMV and NFC, and why should you care? Read on for more info. eMarketer forecasted a 210% growth in mobile payment transaction value in 2016 during the 2015 Money 20/20 conference in Las Vegas. More people use credit cards for payments and mobile phones are becoming a popular consumer payment option as well.Īpple, Android, Samsung, and Chase all offer ways for customers to use their smartphones for payments, and new services are popping up all the time. These days you need to be prepared to handle a slew of payment options. There was once a time when all you had to worry about was having enough cash on hand to provide customers with change.