EMV compliance: Fact or myth?
Ever since whispers of a switch to EMV cards started circulating a couple of years ago, there have been both true and false statements in the air. It's difficult to keep these rumors at bay, even after the Oct. 1 deadline has passed. Although some business owners have made the transition, many others are still waiting to bite the bullet. This may be due in part to these myths floating around. Let's debunk some of these false EMV compliance statements:
Myth: EMV readers won't accept magnetic stripe cards
As merchants make the switch to EMV compliant readers, they will notice that many of these terminals still allow customers to swipe magnetic stripe cards. Most, if not all, credit card providers have sent out chip-enabled cards by this point, making their original cards unusable. However, it is up to consumers to decide if they will use the EMV or magnetic stripe card. In fact, many chip-enabled cards will continue to have the magnetic stripe so customers can continue to pay until more businesses have implemented the EMV terminals.
Myth: It's mandatory to make the shift
Companies are not legally required to change over to EMV-enabled point-of-sale systems. Credit card providers have just altered their contracts so that post-Oct. 1, they are no longer liable for fraudulent purchases completed with their cards. Instead, that responsibility - and the penalties associated with it - now falls on merchants. The EMV liability shift is meant to encourage merchants to accept a more secure method of payment.
Myth: Once businesses are EMV compliant, they no longer need to worry about fraud
This couldn't be further from the truth. EMV compliance and the switch to chip-enabled cards and readers are just a couple of steps that can reduce a merchant's interactions with fraud. Stolen information, especially credit card and other sensitive data, is still a large problem for companies, since enterprises tend to store these materials in their database. Hackers will continue to try infiltrating large and small businesses' networks to get their hands on customer information. Although in-store fraud is likely to decrease, card not present fraud is likely to increase.
Myth: EMV compliance isn't worth the cost
Although the technology may be an extra expense up front, the savings associated with EMV compliance will likely be worth the additional cost in the long run. Actually, the upgrade doesn't have to be overly expensive, if it's done correctly and merchants complete their research. Many EMV-reader distributors are offering trade-in or reduced price motivations to get more of these systems into companies. Furthermore, some credit card providers are trying to curb some of the cost of these new POS terminals. Visa, for example, eliminated required yearly PCI audits for enterprises that process 75 percent or more transactions with POS solutions that accept both EMV and magnetic stripe cards.
EMV compliance is not a myth. In fact, it is a smart move for merchants in a variety of industries. Making the switch to EMV chip card technology will help decrease the likelihood of fraud, alleviating businesses from the potentially hefty cost of penalties. The transition is a safety measure for both companies and their customers. By upgrading their terminals to EMV compliance, merchants can make it more difficult for hackers to steal or counterfeit credit card information. Along with fewer fraudulent purchases resulting in costly fines, EMV-enabled readers give consumers a sense of security, as many know the benefits of these adjusted terminals.