EMV Chip Cards: Don’t Get Caught Being the Weak Link!
EMV Chip Cards are Here!
Yes, EMV chip cards are here! We have entered a phase where credit cards have both a magnetic strip and an EMV chip. Merchants must now upgrade their point of sale (POS) terminals and software to accept EMV cards. This will come at an upfront cost to the merchants, which is why many are reluctant to upgrade.
Don’t Be The Weak Link
Yet merchants who have not switched to new terminals might soon find themselves in an even more expensive situation: The weak link in POS fraud transactions.
As many know, retailers that have not yet upgraded their credit card readers to accept EMV chip cards will now be held liable for fraudulent transactions processed at their locations. What they might not realize is that where before credit card fraud was distributed randomly across all merchants, now it will be distributed across an ever-decreasing number of retailers that do not accept EMV chip cards.
EMV Chips Prevent Fraud By Producing Unique Codes
The magnetic strips on the backs of our credit cards are based on decades-old and are notoriously easy to counterfeit. Once a fraudster is able to skim the information off of a credit card’s magnetic strip, reproducing another card with identical information is easy. The EMV chip however prevents this type of fraud because it produces a unique, encrypted code for every transaction.
Weak Links Are Specifically Targeted
Fraudsters know merchants who accept EMV chip cards cannot be targeted any more and will now purposefully seek out merchant locations that have not yet upgraded their credit card terminals. According to creditcards.com, that business represented $6 billion of fraudulent transaction for POS transactions alone in 2014. For fraudsters, it will almost be business as usual. They just might have to look a little harder for businesses that have not kept up with the times before carrying out their schemes.
To avoid being a target of fraud, please contact us for credit card terminal solutions.