Do I really require new Equipment?
Then again, it’s not that bad. The card associations have stated that all people who use credit cards from the USA as a method of payment should upgrade their processing equipment for credit cards in the year 2015. New equipment should be EMV enabled to allow you to lower your risk.
That’s all the details that business owners typically receive in regards to what’s happening in their money flow. A lot of business owners learn that it’s a “rule” and begin to be in a state of panic. They rush to be “compliant” with the new rules and then end up spending much more than they need to. The truth goes further and is a lot simpler. If heads that are more rational prevail, and this is the case, it’s not nearly as terrifying (or costly) as it initially seems to be.
What #>%& what is the EMV?
EMV stands for an abbreviation for Europay, MasterCard, and Visa. It is a worldwide standard for the use of integrated circuit cards, or “chip cards” and IC chip readers that are chip-capable and are installed within or connected to credit card terminals or automated teller machines (ATMs). The EMV rules apply only to the card-present (face-to-face) transactional environment. The technology also makes it possible to make use of other payment methods, including mobile phones, with programs like Apple Pay and Google Wallet.
For a long time, EMV payment technology has been the norm in all countries, with the exception of the USA. Nearly all companies across Canada and Europe make use of debit and credit cards which can support EMV. Simply put, it’s a safer method for authenticating and processing transactions with debit and credit cards. It’s much safer than magnetic stripe technology that’s extensively utilized throughout the USA.
What if I say to Hell With It and I Do Not? Do I Need to Upgrade my Equipment?
There’s a chance that there’s perhaps nothing. There aren’t any fines, and nobody will visit your equipment. There are numerous reasons to change; however, one of the most significant risks to your business is the shift in liability that will be taking place on the 1st of October this year. Here’s a timeline of when the liability will shift to your company from banks in the event of fraudulent transactions.
1 October 2015: the liability for fraudulent transactions shifts over to (ultimately) the seller on fraud-related sales transactions for Visa, MasterCard, Discover, and American Express. (Looks like a lot of them for me!)
1 October 2016, MasterCard responsibility will shift onto the ATM operator in the case of MasterCard transactions.
1 October 2017, Visa, MasterCard, American Express, and Discover liability shifts will take place for gas stations with pay-at-pump pumps and the use of Visa as well as American Express at ATMs.
It is evident that the most important date for many business owners is the 1st of October 1, 2015.
How do I know? What is the impact on me?
Imagine if October 2015 comes around. You’ve not upgraded your equipment for processing cards. Your equipment is capable of reading the mag stripe of the customer’s card, but it is not able to read the embedded chip on cards with them. You are selling $500 worth of merchandise to a client and then swipe their magnetic strip credit cards with the card reader that is old. If the transaction is not legitimate, then you lose the $500. You must repay it. Furthermore, you’re not responsible for the price of the item.
Imagine you’ve upgraded devices in order to EMV equipped terminals. Similar to the scenario previously, it’s the bank, and it is not the proprietor of your business who is responsible for the $500 fraudulent transaction. However, you utilized the magnetic strip option in your upgraded terminal to swipe your credit card to complete the transaction; the possibility that you would have made the transaction using EMV technology has saved you $500!
Fraudulent transactions may result from stolen or lost cards or counterfeit cards, or any other reason. It’s a tragic yet true reality that magnetic strips can be easily forged once the cardholder’s data is stolen.
It’s impossible to afford that kind of loss. What should I do?
The main point is that updating to the latest technology in processing equipment for payment is a good decision that business proprietors should consider. It’s safer and reduces the risk of fraud. We’re all part of this. Anything we can do to stop the theft of identity and fraud is a great thing.
It’s good to know that that the sky isn’t falling like some banks and sales reps would like you to believe. They just want to sell their equipment and earn profits. They would like business owners to wring their hands, raise their eyebrows, and pull out their wallets. This isn’t necessary. If you can find an independent processor, this equipment is offered to business owners at no cost. Now is the time to speak with a trusted representative and switch to 21st-century processing technology. Keep in mind that the date for the liability shift is October 15, 2015. Make it earlier if you can to avoid the rush at the last minute.