If you haven’t received a new credit card from your bank or credit card company with a fancy new magnetic chip on the front, expect one soon. That chip signifies that your card is equipped with EMV technology.
EMV, an acronym for Europay, Mastercard, Visa, a technology that has been popular internationally is finally coming to the United States. EMV cards are equipped with a special chip to prevent counterfeit transactions, protect consumers and have been a way to reduce the costs of fraud. The chip authenticates transactions more effectively than magnetic stripes. While magnetic stripes are easy to replicate, EMV chips create a unique transaction code each time the card is used and cannot be reused.
Businesses are not required to update their current technology systems. However, not doing so could expose them to chargebacks and cost them more money.
Previously, if a business followed the proper steps but a counterfeit card is accepted as payment, the business was not held liable for the chargeback; the bank was responsible for the loss.
However, what has been coined as “the liability shift,” took place on October 1, 2015. Now, the business may become responsible for the chargeback.
Should you upgrade?
The big question many businesses have is: “Do I need to update my technology?” That decision is for the business owner to make. A guide that many companies have followed is determining the price point for an upgrade to their systems compared to how many bad transactions it will take to offset the cost of new equipment.
Industries selling highly desirable items, such as electronics, appliances and other big ticket items or businesses with a high risk of fraudulent transactions see the value in updating their systems. Meanwhile, companies where hundreds or thousands of fraudulent transactions would need to take place before offsetting the cost have opted to wait until an upgrade to their system is necessary.
When you’re ready to upgrade, call Boomerang Management Enterprises! We have been doing business in Rapid City for 15 years! We love to help companies make sure they have the information they need to make educated decisions about I.T. and Point of Sale products: 605-718-2666.
Ashley R. Auwerter – Client Account Representative – POS Solutions