EMV technology (aka those chip card readers) has been around for a few years now, but many retailers have been slow to adapt to the change. Sure, it can be a hassle to switch out all your machines, change how your checkout process works, and learn a whole new payment system, but the benefits far outweigh the costs. Delaying your transition to EMV technology is an unnecessary risk and sets you up to take the fall for fraud. Read on to learn why EMV compliance is a must for your business.
A Brief History
Do you know how EMV technology got its name? It’s actually the initials of the three major credit card companies – Europay, MasterCard, and Visa – who paved the way for this technology to take shape. Other credit card companies joined in later, but these three were the pioneers committed to a new era of consumer safety. Their vision has proved successful at reducing credit card fraud, but adoption in the United States has lagged behind that of other countries. It’s time to get serious about it, and EMV technology is a great step in the right direction. But it doesn’t work if you don’t use it!
Whose Fault is It Anyway?
Retailers in the United States are still not required to implement the EMV technology, but there are significant advantages for doing so. In October 2015, new regulations took effect that shifted the blame for credit card fraud from banks to the merchants themselves, unless the merchant has upgraded their POS terminals to EMV technology and the payment was made with a chip card. Banks and credit card companies have been methodically rolling out these EMV compliant cards for a while now, so it’s up to merchants to close the gap.
Why Should I Care?
The big reason you should sit up and pay attention to EMV technology is that it reduces fraud. Chip cards use new technology that is much harder to hack and keeps data more secure. This alone should be enough of a reason to switch, but if you need more convincing, consider the issue of chargebacks and how EMV technology can help limit them. Some card companies, like American Express, have changed their chargeback policies to incentivize merchants to complete the EMV transition by raising the liability threshold or limiting the total number of chargebacks a single card can initiate. Finally, EMV technology opens up a whole new world of contactless payments. This method of payment has been a little slow to catch on in the US, but now it’s currently experiencing a boom. Your new EMV compliant POS system will most likely be able to accept this payment type (and if not you should ask your credit card processor for one that will), giving you a leg up on your competition.
We’re Here to Help
If you’re sold on the idea of EMV technology but balk at the thought of a costly and disruptive implementation process, we can help. Give us a call or reach out to us on our website – we’d love to show you how the move to an EMV compliant system can be easy, seamless, and – dare we say it – fun! Let’s get started today!
PS – Are you a developer? Check out our fully integrated, PCI-compliant payment gateway here.
PPS – Does your business accept credit cards? If not, there’s no time like the present to start! Here’s why.