Worthington banks adapting to new EMV chip technology

WORTHINGTON -- EMV chip technology has begun to make its debut in the United States, and Worthington banks are preparing for the shift in credit and debit card technology.


WORTHINGTON - EMV chip technology has begun to make its debut in the United States, and Worthington banks are preparing for the shift in credit and debit card technology.
EMV - which stands for Europay, MasterCard and Visa - chips are the new global standard for credit and debit cards. Eventually, the magnetic-stripe on the back of cards will no longer exist.
This means that banks and merchants alike will need to switch to new technology and new internal processing systems to read the new chips. Most importantly, it means there will be greater protection against fraud.
What makes EMV
cards more secure?
According to, traditional magnetic-stripe cards store confidential data that is unchanging. This is the same data that can be stolen and used without the owner’s permission by replicating the data in the stripe over and over.
EMV chips, however, will have a new transaction code utilized for each individual use. Therefore, if a hacker stole the chip information from one specific transaction, duplicating the data would never work because the stolen transaction number created in that instance would have already been rendered unusable and the hacker would be denied.
Laurie Maras, a personal banker in customer service at First State Bank Southwest, said she believes the change will cut down credit and debit card fraud.
“I think it’s going to help a lot with in-person fraud,” Maras said. “A lot of people can make a fake card and go out and use it as businesses and get away with people’s money that way. This will inhibit a lot of those in-person fraudulent purchases.”

How will EMV cards be used?
Chip cards will be read in a different way. While individuals swipe magnetic-stripe cards, EMV chip cards will be dipped.
Dipping entails inserting the card into a slot, and the card will then be read and verified., however, warns the new process won’t be as fast as the swipe because the transmission of data is a bit different.
Another option for cards in some locations will be tapping it against the terminal scanner. This new type of technology will require banks and merchants to purchase new card-reading systems.
Laura Honken, vice president of operations at Fulda Area Credit Union, said the credit union has already taken measures to make its ATMs EMV-chip compatible. 
“We have already updated our ATMs,” Honken said. “As of this moment they cannot read EMV chips, but once we update the system it will be ready to go.”

Why is this happening?

According to, major U.S. credit card issuers created a deadline of Oct. 1 to change who is liable for card-present fraud.
Currently, if a card-present transaction is done using a counterfeit or stolen card, the “consumer losses from the transaction fall back on the payment processor or issuing bank, depending on the card’s terms and conditions.”
As of Oct. 1, “the liability for card-present fraud will shift to whichever party is the least EMV-compliant in a fraudulent transaction. ... Automated fuel dispensers will have until 2017 to make the shift to EMV. Until then, they will follow the existing fraud liability rulings.”
Just because the deadline is October of this year doesn’t mean all cards will be replaced and every merchant and bank will be ready. The transition is a huge expense for banks and merchants alike.
“My understanding is the expense is in getting the (card) readers - that will be a merchant expense,” said Doug Tate, president of Worthington Federal Savings Bank. “For us it’s getting the proper software. … The cards themselves are actually going to cost us $3 additional per card from what we are charged now. And with the amount of cards we issue, that is a lot of money.”

What if the retailer doesn’t support EMV chip technology yet?


As of right now, cards being issued in the U.S. will have both the EMV chip and the magnetic stripe. This is the transition period for the country.
Many European countries have moved to EMV technology already, but it will be a multi-year process in the U.S.
“Eventually the strip will be gone,” said Kris Smith, an employee at Worthington Federal Savings Bank. “It took Great Britain about eight years to make the transition.”

Where are Worthington banks with these changes?

First State Bank Southwest: “We will be starting the transition of cards in October,” Maras said. “We will be sending the new cards out as old cards expire. … All our ATMs are ready for EMV cards.”
Worthington Federal Savings Bank: “My feeling is (the U.S.) waited too long for this and it should have been done quite some time ago,” Tate said. “I was at a meeting here recently that said that companies that are going to be stragglers in the EMV chip implementation will be more apt for fraud.”
Bank of the West: “We will slowly implement the new cards with chips by the end of the first quarter in 2016,” said Ethan Bates, Bank of the West branch manager.
United Prairie Bank: “United Prairie Bank is currently targeting a Quarter 1, 2016 launch of EMV Chip Debit Cards for our clients,” said Crystal Hoffman, United Prairie Bank Retail Manager. “We always strive to provide the best security capabilities, and this offering is a huge step in the right direction to add a greater level of comfort for our customers when it comes to card payments.”
Rolling Hills Bank & Trust: “We have taken the steps to bring all of our ATM machines into compliance so they will be able to read the EMV chips,” said Jan Myers, vice president at Rolling Hills Bank & Trust in Atlantic, Iowa. “We will be picking a date in the not-so-distant future so when we start reordering debit cards or credit cards, they will be compliant with EMV technology.”
Wells Fargo: “We know our customers trust us to protect their information. We work hard to help prevent card fraud and we support the banking industry’s transition to chip technology as an important tool in fighting counterfeit fraud both in stores and at ATMs,” said Staci Schiller, vice president and communication consultant. “We currently offer chip card capable payment terminals to our merchant customers and issue chip-enabled credit cards to many customers in our consumer, small business and commercial card portfolios. We have also begun the process of issuing chip-enabled cards to many of our debit card customers, and can issue a chip card to most debit customers who request one.”
Fulda Area Credit Union: “We will replace old cards with new EMV cards naturally as our member’s cards expire,” Honken said.

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