Why EMV Terminals are so Important for your Business
Technology change is a sign of the times, sometimes necessitated out of security and other times out of demand caused by consumer reaction to large data breaches. In this age, security is on everyone’s mind. To help safeguard the most precious commodity, monetary and personally identifiable information, as either a big or small business, having a chip reader is a selling point to your customer. To consider yourself competitive in the business market, EMV terminals (which refers to the Europay, Mastercard and Visa standardized protocol for “integrated circuit” cards or “smart cards” and refers to payment terminals also known as “chip readers”) are an absolute must.
EMV terminals, like those featured here, safeguard personal information. Here are the most important things you need to know about them:
- PIN or Signature requirements are determined by the bank issuing the card not whether it is a debit or credit card.
- Chips contain a unique one-time transaction code and constantly change with every use. Unlike magnetic strips containing stagnant data vulnerable to being copied, cloned and compromised due to its unchanging nature, chips are harder to hack and extract the data.
- Merchants that process a chip card without using an EMV terminal or chip reader are liable for fraudulent transactions effective after October 1, 2015 at most places.
- By requiring PIN at the terminal in conjunction with the chip, lost cards cannot be used fraudulently as easily, possibly reducing crime at point of sale and limiting additional risk to the merchant.
According to Creditcards.com, approximately 85% of cards issued in the US through July 2017, or a staggeringly 855 million cards, are issued with chip enabled technology while only about 50-52% of businesses are compliant with the new chip readers. This means over 50% of the interactions (assuming that not every interaction is run through as a chip interaction) leave the merchant liable for fraud and chargebacks related to loopholes that allow consumers to deny charges as fraudulent (even though sometimes they may be completely ethical and legitimate) if the consumer has a chip card and the merchant doesn’t run the transaction through a chip reader.
For more information on choosing a chip reader or understanding why your business could benefit from using EMV terminals, contact us. Make the move to get a chip card reader and don’t open yourself up to absorbing unnecessary costs and the hassle of disputing fraudulently charged claims more than necessary which takes time away from running your business and eats into profits.