As the rest of the world adjusts to EMV chip cards, American ATMs must follow suit in order to stay relevant. EMV card acceptance was mandated for American retail locations in October 2015. Stores that do not achieve compliance are liable to pay for any damages if customer information is stolen. Now, another deadline looms for banks and credit unions. According to the Credit Union Times, all ATMs must be EMV-chip card compatible in banks and credit unions by October 2016. With this deadline quickly approaching, it is important for banks and credit unions to purchase advanced ATM technologies to suit customer needs.
EMV chip cards were used throughout Europe for the last decade as a safer alternative to magnetic stripe credit and debit cards. EMV chip cards are also safer to use online and in stores, and they are already widely accepted by many U.S. restaurants and retailers. However, small-scale retailers are the last to catch onto this important and necessary business trend.
What requirements must banks and credit unions meet when purchasing an ATM that is EMV compliant? According to EMV Connection, the machine must securely hold the chip card in place while the transaction is processed. The machine must also generate unique cryptograms that keep the cardholder and the machine safe. Lastly, all machines must have effective security systems that will protect them from hackers and a machine front that is difficult to duplicate. This is because some fraudsters will try to create false machine fronts in an effort to steal cardholder information. With a unique machine front, ATMs can provide greater security.
By purchasing a safe and reliable EMV compliant ATM, a bank can better service its customers in 2016 and beyond through safety and reliability.
ATM technology advanced exponentially in the past five years. As such, it is important for small banks and credit unions to purchase machines that are compliant with new laws and ready to service consumers. By choosing an EMV compliant machine by October 2016, your financial institution will save the headache of assuming liability and paying fines down the line.
May 5, 2016