Are you currently accepting credit card payments using a card reader? If so, read on as you will be impacted by upcoming changes taking effect October 2015. Currently, credit cards have a magnetic strip which contains the account information. New required EMV technology is a chip embedded in the card capable of being read when inserted into the machine.
EMV cards have a two-factor verification process adding an extra layer of protection against fraud. The embedded chip is used to verify the credit card and a pin number or signature is used to validate the cardholder. The idea is that the extra layer of security makes it more difficult for criminals to use counterfeit or stolen credit cards.
It’s important to know that the October 2015 deadline will mark a liability shift from the credit card issuer to you. Currently, the law states that the credit card issuer is liable for any loss resulting from credit card fraud. Even if your current system is PCI compliant, you will still be liable for fraudulent transactions that occur if you do not have a system that accepts EMV cards.
PCI compliance and the EMV standards address two different aspects of security. While PCI compliance is designed to protect the consumer’s data once a transaction is initiated, EMV standards are intended to verify that the card being used is not counterfeit.
If you don’t currently have EMV technology in your business, contact your merchant processing vendor to discuss your situation and the equipment you’ll need. Now is also a great time to research other companies and find lower rates. Have your statements analyzed by one or two vendors other than your current merchant and see if the rates you are currently charged can be reduced. Need a referral to a vendor? Contact us today for names of those we trust.
Don’t wait until the fall to look into this issue. If you postpone getting the EMV compliant terminals, there may not be enough available to meet demand. Take the time now to make sure you have equipment that will be able to accept these new cards. Failure to do so could result in costly fines to your business.