In the past several months since the EMV requirements for Tier 1 merchants went into effect, one of the biggest issues facing both companies and consumers is the fact that these transactions take a while to complete. While not a substantial amount of time in and of themselves, each EMV transaction does take a few additional seconds to complete, and that can lead to some difficulties, especially for smaller businesses trying to process a decent-sized number of transactions during busier times. However, that may soon no longer be a real concern.
This is because MasterCard, the world’s second-largest payment processor, recently unveiled new technology that can increase the speed of each EMV transaction significantly, according to a report from the company. This new application, known as M/Chip Fast, takes the security-related ideas behind EMV and combines it with the speed and convenience of mobile payments to create a faster and more secure transaction.
Why is this important?
One of the problems with EMV, as consumers see it, is that these transactions take longer to complete by several seconds than the traditional credit and debit card purchases to which they have been accustomed for the vast majority of their lives, the report said. But to that end, MasterCard is encouraging all payment processors and point-of-sale developers to integrate M/Chip Fast or similar technologies as a means of moving toward a more convenient and secure future for the industry as a whole.
“Ultimately, we all want to deliver great experiences for consumers and merchants,” said Ajay Bhalla, president of enterprise risk and security for MasterCard. “That’s why we believe that M/Chip Fast or any similar product should be implemented in consultation with the industry. With that holistic view, interested merchants can easily integrate this with their current systems to provide both speed and security for all chip cards.”
A look at the numbers
Right now, about 2 in every 3 MasterCard-branded debit and credit cards can complete an EMV transaction, a number that’s up by more than half in just the last six months, the report said. In addition, about 1.2 million businesses large and small accept EMV transactions. That’s an increase of 121 percent in the same timeframe. Security experts in the payment card industry say that implementing these technologies will provably help merchants handle a larger number of transactions in a shorter amount of time and could, therefore, also boost the number of companies adopting the technology.
EMV transactions are more secure because the cards are harder to duplicate than those that rely only upon the traditional magnetic stripes. Moreover, because MasterCard and Visa are now mandating that a growing number of businesses adopt EMV payment processing or else face growing liability for any fraudulent transactions they inadvertently suffer. The sooner companies make this move, the more likely they will be to face fewer losses to fraud, putting both themselves and their customers in a better position going forward.Back To Blog