The EMV Deadline is Looming
With the EMV deadline just a week away, many Small Business owners still haven’t upgraded their POS systems to accept the new chip-style credit cards. Those that haven’t can be held liable for any fraudulent charges which may occur instead of the card issuer. There is no legal requirement for businesses to accept the chip cards, however, and traditional swipe terminals will continue to process both the older cards as well as the new chip cards which also have a magnetic stripe.
What is the Risk to Non-Compliant Small Businesses?
It may be less than you think. There are many small businesses that are not traditionally targeted by fraudulent purchases. Generally businesses that process smaller transactions such as coffee-houses are not at risk and may find the cost of upgrading equipment higher than the potential liability. Businesses that require other forms of personal identification such as automotive sales or doctors offices are also less at risk.
What Businesses are at Risk?
Businesses that sell high-end products such as jewelers, electronics stores and luxury retailers carry the most potential risk for fraudulent activity. If your business handles large transactions, your business will take the hit for any fraudulent purchases if you do not have EMV compliant equipment. Keep in mind that this only applies to purchases made in person. Fraudulent internet or phone purchases are still covered by the issuing card company or bank so if you operate an eCommerce business, the liability shift may not affect you.
If you do decide to upgrade your equipment before the EMV deadline, you should also consider a system that also offers NFC or near field communication. This technology allows consumers to pay for purchases simply by holding their smartphone near the payment terminal. With the popularity of smartphones, many feel that NFC is the technology of the future and installing to compatible equipment may save you from having to upgrade again in the near future.