Although the U.S. began accepting EMV payments on October 1, 2015, a large number of merchants have still not made the transition to the new payment technology. For smaller stores and restaurants where fraud seemed less likely, EMV compliance was less of a concern. However, merchants of all sizes are now realizing they can be victims of fraud and can be held liable if they do not use a chip card terminal to process credit and debit card transactions. One option available to SMBs that are ready to transition to EMV is a semi-integrated EMV solution.
What is a semi-integrated EMV solution?
A semi-integrated EMV solution prevents sensitive payment information from being passed through the POS or merchant’s servers. This technology is traditionally provided through an ISV/developer partnership with a payments company that certifies a hardware device to accept EMV transactions within that ISV’s software.
What are the benefits of a semi-integrated EMV solution?
- It’s faster. Traditional EMV certification can take several months to complete because a POS software developer needs to run several hundred tests that encompass every type of transaction for every card brand. Semi-integrated solutions take less time to be EMV certified, cutting the time down from months to weeks.
- It’s safe: Data breaches at large chain retailers like Target and Neiman Marcus made national headlines, causing a public relations nightmare and headaches for customers worried about their payment information. A semi-integrated solution provides an additional security layer because it works independently of a merchant’s payment terminal. No sensitive cardholder data is traded to the POS or merchant’s servers, which means there’s less data up for grabs in the event of an attack.
Taking the POS terminal out of the equation reduces a merchant’s vulnerability to an attack, but some businesses may opt to use data encryption and tokenization in conjunction with EMV acceptance to reduce their exposure to hackers even further.
Why does it take less time to be certified?
Not all tests are created equal, or in this case, even necessary. Semi-integrated solutions are different because most of the EMV compliance work for each card brand is completed by the manufacturer. There is no developer picking apart the POS software and running hundreds of tests over and over. The main task is certifying the software to a hardware device that’s already certified, so the process is much shorter.
Who should consider a semi-integrated EMV solution?
- Value-added resellers (VARs) should offer a semi-integrated solution as an option to cover a broader client base. Not everyone wants to go through the hassle of certifying a POS solution. Without the simpler option semi-integrated solutions offer, merchants may opt to do nothing, which leaves them vulnerable to data breaches and liable for fraudulent transactions and related chargebacks.
- Some SMBs have not transitioned to EMV due to cost. However, these merchants can implement a semi-integrated solution at a more affordable price tag, without sacrificing security or compliance.
- SMBs who have suddenly found themselves as the target of fraud and need to implement an EMV-certified solution immediately should consider a semi-integrated payment platform, which can be deployed relatively quickly.
Semi-integrated solutions remove many of the roadblocks facing merchants who have been slow to transition to EMV technology. Semi-integrated solutions cut down the time to deploy an EMV solution from months to weeks and help secure payment processing even further. Semi-integrated solutions are perfect for SMBs who are need fast, affordable EMV-certified processing without the hassle.
