Our office just got this notice about the change towards chip cards coming in 2015: EMV is a term that everyone should learn to be familiar with. It stands for Europay-MasterCard-Visa, and is a standard which will see the replacement of the current magstripe credit card with a smart card. Since the card will have a chip, and authorization will require a pin, this is often called chip-and-pin. The current standard for the Payment Card Industry is called PCI. The EMV standard will supplant PCI in October 2015 for the major American card processors. The EMV card can either be contact (insert card into a slot) or contactless (tap). Retail merchants will have to replace their current Point of Sale equipment with EMV-compatible card readers and networks. There are two major benefits to moving to smart-card-based credit card payment systems: improved security (with associated fraud reduction), and the possibility for finer control of "offline" credit-card transaction approvals. One of the original goals of EMV was to allow for multiple applications to be held on a card: for a credit and debit card application or an e-purse. EMV chip card transactions improve security against fraud compared to magnetic stripe card transactions that rely on the holder's signature and visual inspection of the card to check for features such as hologram. The use of a PIN and cryptographic algorithms provide authentication of the card to the processing terminal and the card issuer's host system. The supposed increased protection from fraud has allowed banks and credit card issuers to push through a 'liability shift' such that merchants are now liable for any fraud that results from transactions on systems that are not EMV capable. American Express is implementing a liability shift for point of sale terminals in October, 2015. Discover is implementing a liability shift on 1 October 2015. MasterCard is implementing a liability shift for point of sale terminals in October, 2015. Visa is implementing a liability shift for point of sale terminals on 1 October 2015. If you currently have a credit card, you will probably get a replacement EMV card within the year. Any venue accepting point-of-sale credit card payment will need to replace credit card systems by October 1, 2015 or assume liability for any fraud.