A Quick Guide to EMV for Independent Hotels

EMV

It has been a while now since U.S. consumers switched from swipe-and-sign to chip-and-sign (or chip-and-PIN) credit cards back in 2015. And there’s no looking back.

EMV stands for Europay, MasterCard and Visa, and is a global standard for debit and credit card security. Designed to make card-present transactions more secure, EMV cards feature a small computer chip (microprocessor) that must be inserted into an EMV-enabled terminal (chip card reader) to authenticate and encrypt the transaction, and to prove that the card is present.  

Credit card featuring an EMV chip

Protecting cardholder data from theft and reducing credit card fraud, EMV helps lodging operators and other merchants to provide customers with a safer card payment environment on site.

It’s also important to know that with the transition to chip-and-sign/PIN cards there has been a liability shift away from the card issuer to the merchant. While at this point it is not a legal requirement for merchants to adopt EMV, the merchant can be held financially responsible for fraudulent card-present transactions if an EMV payment acceptance option is not available to a customer who presents an EMV-enabled chip card.

Merchants who do provide an EMV payment acceptance option are protected from financial liability resulting from fraudulent transactions, so implementing EMV technology is not only safer for your guests, but it protects your business too.

How does EMV actually work?

While on the surface it might not seem like a big deal, inserting a credit card chip versus swiping a credit card stripe makes a big difference to payment security.

With a traditional magnetic stripe swipe card, only the card number and expiration date is needed to complete a card-present transaction. Because this information is static (it’s always the same for every transaction), it’s relatively easy for credit card data to be copied via compromised credit card readers and used to make counterfeit cards.

When making a payment with an EMV chip card in person, the card is inserted into an EMV chip card reader to validate the card and create a unique, encrypted code for that specific transaction (a different code is created for each and every transaction). The dynamic nature of single-use codes makes it virtually impossible for thieves to steal credit card data that can be used fraudulently—even if the encryption is unlawfully captured and decrypted, it wouldn’t be valid for future transactions.

A chip card inserted into an EMV-enabled terminal

Combined with point-to-point encryption (P2PE) and tokenization, EMV is part of a robust solution that not only increases payment security but keeps credit card data out of the hotel’s property management system, greatly reducing hotel liability in case of a system breach.

To accept EMV chip cards on site, hoteliers must use an EMV-enabled terminal (chip card reader) that communicates with an EMV-certified payment gateway and processor.

WebRezPro PMS is EMV certified with Shift4 and USAePay payment gateways, which support a variety of EMV-capable terminals (chip card readers) that make it easy for hotels to implement EMV within their current operations. Both gateways are certified for EMV with various major payment processors, so it’s possible for lodging operators to adopt EMV without changing service providers, allowing properties to negotiate the best rates or make a switch if preferred.

Advantages of Implementing EMV at Your Property

EMV is currently the most secure method for accepting card payments on site, and significantly reduces card-present fraud and the associated costs. Lodging operations that adopt EMV are protecting both their guests and their business.

Providing an EMV payment option helps reinforce your business’s credibility and gain the trust of your guests, which impacts the overall guest experience of your property.

As mentioned earlier, the shift to EMV has also shifted liability from the card issuer to the merchant if the merchant doesn’t support EMV chip transactions. This alone is a big incentive for hotels to implement EMV to protect themselves from the very real possibility of financial losses due to counterfeit credit card transactions.

EMV reduces the risk of costly chargebacks too. Charges are harder for guests to dispute when EMV card-present transactions are considered proof that the customer was actually there.

Last but not least, because card-present transactions pose less risk of credit card fraud and chargebacks compared to card-not-present transactions (online purchases and any time a credit card number is manually keyed in), EMV transactions incur lower credit card processing fees, which can potentially save a hotel thousands of dollars per year. (The higher the security risk you pose as a merchant, the higher your fees.)

If you haven’t already adopted EMV at your property, seriously consider the benefits of doing so. Significantly reducing card fraud and counterfeiting, EMV technology protects your business from losses due to fraudulent card-present transactions, reduces credit card processing fees, and shows your guests you care about the security of their data.

What’s next? ​Contact your merchant provider to see if they work with either Shift4 or USAePay. Once you’re set up with an EMV terminal, contact WebRezPro to complete the integration process with your PMS.

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