EMV chip card technology is now being embraced after the total cost of lost, stolen or counterfeit card fraud in the U.S. is estimated to reach $10 billion this year. Although this technology has been adopted by other countries for over 30 years, the U.S. is adopting it on October 1, 2015 which will begin a new wave of payment security. “EMV is a card authentication and fraud-reducing technology that can help protect merchants, consumers, and card issuers against losses from the use of counterfeit and lost or stolen payment cards at the point of sale (POS)”. Companies in the US have already started issuing EMV cards to cardholders while merchants have also begun simultaneously updating their POS systems in
In what ways will this affect your business?
Beginning on the 1st of October, if you do not have EMV-enabled technology, liability for fraudulent card-present transactions made at the POS with be directed to you. The same goes for merchants. If they have not updated their POS system to accept the EMV chip card payments, the responsibility for the fraud will shift to them. On the other hand, if you do have a EMV-enabled POS system the liability will remain with the card holder.
How will this benefit your business?
Not only does the EMV chip card acceptance guarantee your company with consistency for both debit and credit cards, but it also increases reciprocity for all EMV chip cards. This adoption also reduces liability costs and exposure/incidents of fraud.
Is your business prepared?
If you are concerned about whether or not your company is ready for EMV visit www.emvco.com for more information.
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