You’ve probably heard of people stealing, buying and selling credit card information. You don’t want your business to be the victim of such a transaction. But on any given day, your small business is now vulnerable.
The cardholder’s issuing bank previously took care of these situations. Previously.
That’s the way it used to be. Now your small business could be the one that is liable–not the issuer. Starting October 1, the rules changed for Europa, MasterCard and VISA (EMV) cards. Now, there are “chip cards”, and U.S. credit card companies set October as the deadline for the national adoption of their new chip cards. So, if you have not integrated EMV technology that processes chip cards, your business will now become financially responsible for fraudulent transactions previously covered by the cardholder’s issuing bank.
If they haven’t heard already, brick-and-mortar retailers are going to be hearing the term “EMV” a lot more in the coming months. As payment card issuers continue to roll out their newer, more secure cards containing a data-encrypting chip, merchants are feeling the pressure to upgrade their point-of-sale (POS) terminals to make sure they’re up to date with EMV technology.
As with any widespread technological update, many businesses may hear confusing or conflicting information regarding how the changes will affect them. Business News Daily spoke with security and payment industry experts to get to the bottom of five common beliefs (and misbeliefs) about EMV.
Myth 1: EMV will make credit card transactions completely safe and secure.
Americans traveling in other parts of the world are sometimes bewildered to discover that their debit or credit cards don’t work at automated kiosks that use new chip and PIN technology rather than magnetic stripes. (The technology is also referred to as EMV, which stands for Europay, MasterCard and Visa, the three card brands that created the chip in Europe and Canada.)
EMV cards have been the standard in Canada, Europe and other parts of the world for several years now, but they’re not as widely used in the U.S. That’s likely to change next October, when liability for fraud shifts from U.S. card issuers to merchants if merchants don’t upgrade their payment terminals to properly accept chip-based cards. (Some smaller merchants may be slow to adopt the new technology if they feel it’s less expensive to assume the fraud risk than update their payment terminals.) President Barack Obama also recently signed an executive order to embed this technology in all government-issued credit and debit cards.