October 1st Has Come and Gone, EMV is Here to Stay
The October 1st EMV deadline has come and gone. Have you become compliant? If not, you may not be alone as thousands of small businesses have still not made the switch, and millions of credit and debit cards still need to be replaced by banks. What does being non-compliant at this point mean for you, and why should you make the switch sooner than later?
Why is the United States making the switch?
Although the US only makes up about a quarter of all credit card transactions, about half of all global credit card fraud occurs here. To combat this there are new cards that have a chip embedded on the front, which makes a credit card user’s personal data much safer when compared to those with magnetic strips alone. These chip cards will come with magnetic strips for now, as not all stores have upgraded to chip readers. However, if a store does accept chip cards, consumers are much safer choosing to go that route.
What does this mean for retailers?
If you do not yet have the equipment and ability to accept the new chip cards, people will still be able to use their cards in your store. However, if fraud occurs as a result of a transaction at your store, and you do not have the new chip reader, and the consumer has a chip card, the cost of the fraud will come out of your pocket. The new rules, effective October 1st, state that whomever is the least compliant is liable for the fraud.
I haven’t updated our card readers yet. What should I do?
Although October 1st was the deadline, everyone down the line is still working on it. It is estimated that about 40 percent of all card readers will accept chip cards by the end of the year. As for cards, it could take years before all credit card companies issue the newer chip cards, and some smaller banks may not replace a customers’ credit card until their current card expires. No large-scale change has occurred overnight, but it is important for you to start working towards being EMV compliant if you don’t want to be saddled with responsibility for fraud that might occur in your store.
October 1st has come and gone, but EMV compliance is truly here to stay. Make sure your business is ready. Don’t know where to start? We created a free guide to help you transition to EMV compliance. You can get your copy of The Retailer’s Guide to Surviving the Switch to EMV here.