If you aren’t using an EMV chip reader, take this as your sign to make the switch!
The transition from stripe cards to chip cards has been an uphill battle for consumers who aren’t so open to change. By now they have been made aware that chip cards are not the government’s plan to keeps eyes on your bank account, but the chips are actually there for consumer protection. They prevent fraud and counterfeit charges!
Well, that’s all fine and dandy for the consumer but WHY do I, as a merchant, need an EMV reader?
As of October, 2016 all merchants are required to use EMV Processing Terminals. While there are no EMV police running around on little go-carts sticking tickets on your registers, there are other risks involved with non-compliance towards the EMV Laws:
1. Loss of Fraud Protection:
Businesses that put off obtaining EMV Chip Terminals until after October 1, 2016 have become responsible for any and all fraud, counterfeit, or compromised cards and the fees that are associated with those “incidents”.
Since EMV Chip Cards are deemed safer against fraud than the previous Magstripe cards, banks and credit card distributors are no longer responsible for fraudulent charges if they are made on a less-secure device, i.e. a Magstripe reader.
2. Non-Compliance Fees:
Businesses who choose not to make the switch over to EMV Terminal are also subject to a fee from the precessing company on each transaction processed without the proper EMV Terminal or Chip Reader.
3. Increase in Fraud:
As a merchant, you may be targeted by counterfeiters or hackers because of your lesser-secure processing system. A villain could take advantage of these EMV Laws and purchase items on a stolen or compromised credit card. The card then goes through your Magstripe system, only to later find out it was fraud. You as the merchant are responsible for the fines, the lost merchandise and for reimbursing the credit card company.
That’s a serious bummer.
Bottom Line– The time has come to make the switch from Magstripe terminals to EMV Chip Readers for your protection and the protection of customers.
If you’re still on the fence about EMV Processing Terminals or maybe you NEED an EMV Processing Terminal– Shoot us an email and we would love to answer any questions and get you set up on your new processing system. [email protected]