Chip Card Terminals Are Here! Upgrade Now to Reduce Liability
As of October 2015, the United States began using chipped credit cards and debit cards. If you are like most business owners, you may be wondering whether or not you should purchase the new chip card readers. In fact, you should upgrade to the EMV chip card readers—the Europay, MasterCard, and Visa readers—to reduce or eliminate your business liability in the event you unwittingly accept a fraudulent payment.
How Does Chipped Cards Limit Liability Exposure?
As you know, hackers are becoming savvier. They are able to circumvent up-to-date systems with ease, so it comes as no surprise that they are able to exploit the dated technology found in traditional magnetic-striped cards and readers. As such, major credit card providers such as Visa and MasterCard have been responsible for covering the charges. However, major credit card companies are feeling the pinch associated with covering these charges. Therefore, to prevent hackers from manipulating card readers and credit card data and reduce their costs, the new chipped cards were introduced.
By offering a securer way to pay for credit card transactions compared to the old magnetic-striped credit cards, major credit card companies are steering businesses towards using the new technology. Instead of being absolved from covering the cost of fraudulent credit card transactions, businesses may have to cover these costs if they aren’t using the new chipped reader.
As a business owner, you can limit your liability exposure by upgrading to the new EMV. The new cards are designed to prevent fraudulent activities in a number of ways, including encrypting the data transmitted between the card and the terminal which prevents hackers from reading the data.
Who Is Responsible for Fraudulent Activity Using EMV Cards?
Once you’ve upgraded to the new EMV chipped credit cards, you are no longer on the hook for fraudulent credit card activities. Much like the days before the introduction of the EMV chipped cards, credit card companies will likely assume responsibility for fraudulent transactions processed using the new chipped cards.
Although many businesses may be hesitant to upgrade to the new cards due to costs, not upgrading could cost business significantly more. The fallout from fraudulent credit card transactions can be millions, which goes beyond the hit your brand takes in association with a breach. In reality, the cost of upgrading to the new EMV reader is far less than a company will pay to resolve a breach.
You can limit your liability exposure by upgrading to the new EMV card readers. Our team at Premier Business Advantage is ready and willing to walk you through the process of protecting both your business and your customers’ information. If you are ready to get started, or you simply want to learn more about the security embedded into the new chipped credit cards, give us a call today.