EMV chip technology is becoming the standard in the United States card payment domain. Unlike magnetic stripes, these new chips are much more difficult to counterfeit, which is expected to help in eliminating card-present fraud in the marketplace.
Banks are issuing cards embedded with the EMV chip technology even more quickly than originally projected. According to an online article in Digital Transactions, it is estimated that over 800 million chip cards will be in circulation as of December 2015.
As of October 1, 2015, businesses that accept card payments must upgrade to EMV chip technology or risk being held financially liable for card-present fraud.
Banks that issue payment cards have been responsible for card-present fraud losses. Beginning October 1, 2015, however, the liability shifted to those businesses who do not have the equipment to support EMV chip technology. These businesses now run the risk of taking financial losses for each unauthorized transaction where the issuer has provided the cardholder with a chip card. Protect yourself by choosing chip technology.
Merchants May Elect to Postpone...
The risk of liability for unauthorized transactions does not mean every business that accepts cards must become EMV chip compliant immediately. For some businesses this risk may be minimal, and they can postpone the adoption of EMV chip technology. For others, the risk may be much higher and immediate implementation of chip technology is essential. It is important to understand your business’ risk and to know your options in order to make informed decisions adopting chip technology.
The move to chip technology is just beginning. As more and more businesses become chip-ready, those unable to accept EMV cards may become targets for fraud.
EMV technology can help you and your business.
Contact Regions Merchant Services and let us assist you in becoming chip ready.
Call 1-800-Regions or Request Information Today for additional information.