As identity theft and information security breaches become more common, credit and debit card companies are taking action and shifting to EMV chip technology. EMV smart chip credit cards (Europay, MasterCard, and VISA, or smart cards/chip-cards) are a safer, more effective way for consumers to pay with their credit or debit accounts without compromising the security of their sensitive information. It’s an attractive option to buyers, and now with the shift in fraud liability from the processing of magnetic stripe data, it is becoming necessary for sellers as well.
So what are EMV chips, and how do they work?
EMV smart chip credit cards rely on a two-step authentication process. First, the chips, which cannot be cloned, send a unique, one-time code to be processed. The pin entry by the user provides the second step. Combined, the security precautions reduce fraudulent charges and stolen information dramatically.
Why should small businesses get on board with EMV chip readers?
Starting October 1, 2015, any fraudulent charges made as a result of a card terminal which does not process the EMV chip will be the responsibility of the merchants with that terminal, not the card company. In other words, if you aren’t adopting EMV, the safest method of payment, you are taking a chance with every electronic payment transaction you make. With 100 million EMV cards to be issued by the end of this year and over 1.1 billion by the end of 2015, now is the time to upgrade your equipment to ensure a smooth transition.
How can VMS help?
Velocity Merchant Services have live Small Business Specialists that work with small business owners to identify their specific goals and needs. By helping you ensure that your electronic payment processing and Point of Sale (POS) equipment is up to date, they give you the tools to manage money flow and help your business succeed.
What are your thoughts on the shift to EMV smart chip credit cards? Are your customers concerned with their privacy and security of personal information? Have you had problems with fraudulent charges in the past? Feel free to contact us with any questions or comments at firstname.lastname@example.org!