The Ultimate Case for EMV and Why It’s a Must
EMV Payment Cards – What Are They?
EMV #smartpayment cards, or smart cards, are debit and visa cards with a computer chip. As well as the card itself being very difficult to copy, the technology embedded in EMV cards is extremely beneficial in the fight against credit card and financial fraud. A microchip in the card creates dynamic data that is unique to every financial transaction making it extremely difficult, or impossible, for a fraudster to get hold of that information and use it illegally. The transition to EMV chip cards from traditional debit and credit cards with just a magnetic stripe is progressing at a steady pace in the U.S.
Are You Equipped to Accept EMV Payment Cards?
Providing a safer, more secure method of payment, it is estimated that 70% of consumers had an EMV chip card as of March 31, 2016 – this figure is likely to be far higher now. However, around 15 million point-of-sale terminals have not yet been upgraded to accept EMV chip cards and many businesses lack the facilities to process these transactions.
This is despite the fact that this could be extremely dangerous for merchants in light of the EMV liability shift. If you are not sure what the EMV liability shift is exactly, you could be among the 85% of small business owners and entrepreneurs who are, alarmingly, not aware of it.
The EMV Liability Shift Deadline
On October 1, 2015, the card companies changed the rules concerning who was responsible for counterfeit card losses in the event that a fraudulent transaction took place. Previously, the bank issuing the card was liable, but as of October 1 of last year, it is no longer the case. Now, if a merchant is the only entity in the payment processing chain who is not EMV compliant, that merchant is responsible for the cost of the fraud if they have not upgraded to an EMV compatible terminal.
Why EMV Card Payment Technology Is a Must for Your Business
As well as being liable for any financial loss in the event of a fraudulent transaction, it is essential that you offer your customers the option to pay for your goods and services with their EMV chip card. Although 58% of respondents put their failure to implement EMV card technology down to the cost of a new terminal or reader, can you really afford not to provide a payment method that your competitors offer – or soon will?
More and more retailers are coming on board and offering their customers different ways in which to pay. As EMV payment is so much more secure than the use of traditional debit and credit cards, ignoring the fact that you lack up-to-date payment facilities will not end well for your business.
There are numerous online resources explaining what you need to do to accept chip payment, steps you need to take to ensure a seamless transaction to new, more efficient procedures, and the benefits that your business can expect to see. EMV will soon be here to stay – and it’s a must for your business.