October 1st, 2015 marked the beginning of a nationwide shift in the payments industry towards EMV (short for Europay, Mastercard, Visa) adoption. EMV is the latest security protocol for payments designed to reduce fraud.

If you’ve recently received a new credit or debit card from your bank with a chip on the front, that is part of the EMV transition.

Here’s what changed as of October 1st:

  • Merchants that continue to accept magnetic stripe transactions are liable for fraudulent charges if the customer possesses an EMV chipped card.
  • If the merchant has upgraded to an EMV capable system, but the bank has not updated the card issued for EMV compliance, then the bank is liable for any fraudulent charges.

Chip-based EMV is what you see on credit cards today, while NFC based EMV is a standard for mobile phones and other devices. This new standard has been implemented in other secure payment solutions such as Apple Pay. Even though Coin 2.0 has the form factor of a plastic card, Coin is a mobile device. 

Coin 2.0, which is EMV-ready via NFC, started shipping at the end of August. As a reminder, all users of Coin 1.0 that have opted-in and verified their current information with the company will receive a complimentary upgrade to Coin 2.0.

In the coming months, Coin will release a series of OTA (over-the-air) software updates to comply with evolving EMV standards and improve merchant compatibility. As merchants upgrade their POS (points of sale) terminals to support EMV via chip, they will also start accepting EMV over NFC. For example, if you’re a small business using Square’s newest reader, it doubles as a contactless and chip reader.

Stores such as Bloomingdale’s, Whole Foods, and Peet’s Coffee have already adopted Tap-To-Pay NFC systems nationwide. You’ll start seeing more merchants with the contactless symbol, which means you’ll be able to pay quickly and more securely just by tapping your Coin 2.0 at the point of sale.

Coin is committed to being the leader in developing technology that makes purchases safer and simpler. Merchants will continue to accept transactions through magnetic stripe as the transition phase of EMV will take months, if not years, given the hundreds of millions of credit cards and POS terminals in existence. With Coin 2.0, consumers have the option to use either magnetic stripe or Tap-to-Pay NFC, providing the assurance and convenience to pay throughout the EMV transition period. EMV over NFC is just another step forward and we are excited to share more developments in the coming months.