Time to upgrade to an EMV credit card reader
The winds of winter are behind us and spring is here. You've survived the holiday rush—the busiest time of year for your business—and now it is time to spring fully into this year. Renewal for you might include considering an upgrade to your POS equipment, especially your credit card reader.
EMV and chip cards
One of the biggest advances to come out over the last few years is the integration of chip and PIN technology into credit and debit cards. These chip cards, also known as EMV cards, are quickly becoming the global standard for cards. Driven by card brand leaders Europay, MasterCard and Visa first in Europe, chip cards offer protection on a few fronts. First, each chip card generates a unique, one-time code with every transaction, making it virtually impossible to create counterfeit cards that have any value at the point-of-sale.
That added layer of detection and protection also provides more assurance to consumers, who are thinking about fraud and the safety of their personal information more and more. And, most important to merchants, EMV acceptance at your credit card swiper makes it less likely that you'll face fraud-related chargebacks. The liability for fraud-related chargebacks at the point-of-sale has swung in the direction of retailers since the October 1 shift.
Why you should make the switch?
By making this switch to accepting EMV payments, you're making a big statement to your customers about your role in protecting everyone in the transaction. You're potentially saving yourself a lot of headache from chargebacks and related liability. Why? Well, another major reason to make this switch is due to what is known as the "liability shift.” Effective October 1, 2015, the so-called liability shift places accountability for fraud-related transactions back on the least safe party in the transaction. That means if you aren’t accepting chip cards at your credit card reader, there's a good chance that financial liability for claims of fraudulent transactions comes back in your direction. This is a huge change from the past, where card-issuing institutions, e.g. credit card banks, bore most of the liability for fraud.
Meet your customers' expectations
Card-issuing banks have been aggressively reissuing credit and debit cards beginning in 2015. That will continue throughout 2017. And, with more EMV chip cards being presented at the point-of-sale, the need for readiness is important for card-accepting merchants, particularly considering that the fraud liability shift is fully in effect. In addition, being behind the technology curve can lower a customer's confidence in your business if they do not feel you are doing your best to meet their needs, which today means safety and security are paramount.
The United States, oddly enough, is one of the last remaining holdouts on chip technology, as the EMV shift already has occurred in most major international markets. In fact, chip technology goes all the way back to France in the early 90s. At this point, there are more than 1 billion chip cards in use on the planet.
The payment technology has proven itself on a global scale and credit card companies are ready to push forward into the United States with the EMV initiative. So now, the only option for businesses is to either get on board or be left shouldering the costs of the liability of chargebacks.
If you're still using an old payment terminal, now is the perfect time to consider making the switch to new, EMV-enabled card readers. Find out what's right for your business: Learn more about EMV and what it means for you by reaching out to a Vantiv representative today.