Business and consumers get ready for EMV chip cards
If your business accepts credit cards, you are probably aware that October 2015 is a big month for security. That’s when liability for fraudulent use of a card will shift from card issuers to your business, unless you’ve upgraded your payment system to accept the more secure EMV chip technology.
Many consumers will be expecting your business to accept EMV chip cards. Asked in a MasterCard survey late last year if they expect the more-secure EMV chip cards to be accepted by merchants, 42% said yes, up from just 30% a year earlier.
But it appears many businesses are behind in the transition. More than a third of small merchants have not decided to upgrade or said they won’t upgrade, according to recent research by American Express.
EMV technology helps reduce the risk of fraud by storing information on a chip embedded in the cards. To read the chips, payment terminals must have the technology. Businesses that do not have EMV-enabled payment terminals may be held liable for the costs of point-of-sale fraud starting in October.
Since early last year, I’ve been encouraging businesses to upgrade their systems to accept EMV chip cards.
You may only need to get a new payment processing terminal to accept EMV chip cards.
But, if you have multiple locations, you will need to buy new terminals for all your locations. And, if your terminals are tied to your accounting system, you will need to integrate EMV technology with that system. This will require time and expertise and, obviously, money.
You can find helpful information on EMV technology on MasterCard’s website.