If the majority of the payments your business receives are collected via credit cards, you’ve probably been following along with the payment industry’s transition to EMV, have converted, or are weighing the decision to convert.
Many major retailers have made the switch, but you might be wondering, “What’s the latest?”
If you’re not familiar with EMV, here’s the story:
In an effort to reduce the amount of credit card fraud in the United States, credit card companies are transitioning from cards that use solely magnetic strips to cards that use embedded chips and magnetic strips. These new cards and readers are called EMV (short for Europay, Mastercard, and Visa after the companies that created the standards for the changeover).
Announced in 2011, the change has been in the works for awhile and businesses have been encouraged to change their readers and systems to match the new cards being issued. And while businesses that take credit cards as payments are not mandated to switch their readers, as of October 1, 2015 they could face more liability for fraudulent charges if they are using an outdated reader (a chart in this article breaks down who is liable under what circumstances).
This change affects businesses and consumers alike. Not only are businesses investing in updating their readers, software, and training employees, but consumers are also receiving new cards that need to be activated and are having to learn a new process at the point of sale.
Now that we’re well into 2016, eight months past the initial deadline, we’ve put together a resource list to answer questions you may have about the EMV transition.
1. What if my business hasn’t made the transition yet?
7 Tips for Understanding the Liability Shift
Are Chip-and-PIN Cards Worth It? Cost-Benefit Analysis of EMV Compliance
What Happens If I Don’t Migrate to EMV Processing?
Worth the Expense: Small Businesses Debate Transitioning to EMV
2. How much will converting cost?
3. I’m ready to convert. What do I do?
4. I made the switch. How can I avoid chargebacks?
5. What are the main challenges of the transition?
6. What other changes might be coming in the future and how can I stay up to date?
No matter what your decision when it comes to converting to EMV, these resources will get you up to date on the the EMV transition and its potential impact on your business.
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