You have probably noticed the rectangular metallic chip on the front of debit and credit cards, and your business may have already implemented card readers to read these chips for transactions. The payment card chip is known as an EMV chip, standing for EuroPay, MasterCard and Visa, the first three Major Card Companies to adopt the technology. What you may not know is that starting this year this will be the primary way that payment cards will be read, and that businesses looking to stay up-to-date in the market will need to convert over to the new system.
The primary benefit of the EMV chip is security. The chip reader creates a unique code for the transaction, which makes it much more difficult for thieves and counterfeiters to commit fraud with the card information. Most countries outside of the U.S. have already switched from the prior magnetic stripe system over to the EMV chip reader, and the U.S. will be doing the same this year. Starting on October 1st, 2015, the liability for fraud completed on the old magnetic stripe system will switch from the Card Companies to the business that had the done the transaction. Fraud committed on the new system will be covered by the Card Companies. In other words, if you run a business that takes credit cards for transactions, you will want to start using the EMV chip readers before October 1st so you’ll remain protected from liability!
Buying new card readers for all point-of-sale terminals is just the start for companies looking to comply with the new regulations. They will also want to communicate the importance of the new system to their employees and provide proper training so the transition will be as smooth as possible. Employees are not the only ones who will need educating—customers will need guidance as well, which is why you’ll want to train your employees to the point where they can assist consumers coming down their checkout lanes. The good news? It’s a one-time switch, so once you’ve made the transition and completed the employee training, you’re good to go for using the new technology.