What is EMV?
EMV is a security standard jointly created by Europay, Mastercard, and Visa that reduces the chance of in-person credit/debit card fraud and increases the security of consumer financial data.
Why is DEAJ Making This Change to EMV?
To incentivize adoption of the EMV security requirements on cashless card readers, the processors began charging monthly fines for all merchants accepting non-EMV contactless (“tap”) payments in May 2022. While our Cashless Reader Providers have been absorbing these fines for us, their customers, we were left with two options: 1) sunset the affected devices completely, or 2) remove contactless payment acceptance on non-EMV devices.
We believe removing contactless payments was the better of the two options to support our customers in the light of these new requirements.
What does it mean to no longer accept contactless (“Tap”) payments?
This means that debit and credit card “tap” payments will no longer be processed on non-EMV Seed and ePort readers. Mobile wallet payments will also no longer be accepted. However, magswipe payments will continue as normal. Starting December 1, 2022, all non-EMV readers remaining in the field will have MSD contactless turned off, which means consumers will no longer be able to “tap” with a card or mobile wallet (i.e. Apple Pay, Google Pay, etc.) on any non-EMV device. Instead, consumers will be required to swipe their card to complete a transaction.
Is this for the vending business?
Nowadays, our contactless payments accounts to about 13% of total vending sales. Removing mobile payments like Apple Pay, Google Pay, etc. will restrict payment options to customers, and limiting to just cash and/or credit cards, will definitely and significantly affect sales of the vending operators.
And, What are we doing with regards to EMV?
In compliance to the internet connectivity upgrade to the G4/G5 system in USA, we are switching our cashless and contactless payment system to Cantaloupe’s EMV Seed Live Cashless Plus for all vending machine installation in DFW (Dallas, Fort Worth and Denton) starting 1st August 2022.