Why You Need to Be EMV Compliant Today
October 1st, 2015 was the deadline to convert all credit card readers to the new EMV chip system, but most businesses have yet to make the switch. Transitioning to the new system has been a bit of a process as many companies are hesitant to change. Here is some more information on why you should make the jump and encourage your clients to do the same.
What is the EMV Chip?
EMV stands for Eurochip, Mastercard, and Visa, which is the new industry standard to combat the modern wave of modern crime. The old magnetic stripe system contained static data that never changed. With the new EMV system, a unique verification is sent to the system each time a purchase is made which makes it much more difficult to replicate.
The European Union, which converted to the EMV system years ago, has experienced an 80% drop in fraudulent charges on the point of sale systems while the United States has witnessed a 47% increase during the same time (ThatsEMV).
Why make the switch?
Before, when retailers accepted fraudulent charges, the bank usually took responsibility for the payment. Now, the responsibility will fall to the party who is the least compliant with the new EMV system. That means, if a merchant does not have a system in place to accept EMV enabled cards, they will be liable if they accept a stolen or compromised credit card. By having a card system that is EMV compliant, businesses can now rest easy, knowing they will not be accountable for any fraudulent charges.