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Fraudsters Target Businesses That Don’t Accept New Chip-Based Credit Cards
If you haven’t updated your point-of-sale technology, you should do so as soon as possible.
Last year, EMV chip technology rolled out in America. Banks started issuing new credit cards to consumers. In order to encourage businesses to accept the new chip-based credit cards, Visa, MasterCard and American Express shifted liability for fraudulent charges to some business owners.
As of October 1, 2015, liability for in-store counterfeit fraud shifted to the person or business that had not adopted the new credit card technology. So, if your small business does not support EMV, you could be on the hook to pay for fraudulent charges. That’s a significant burden for small businesses.
“Not to be too sensationalist, but whether you’re a merchant or issuer, if you’re one of the last to switch, fraudsters will find you because they know you’re one of the last terminals to be upgraded,” said Troy Bernard, director of EMV and emerging products at CPI Card Group. “They always find the path of least resistance.”
Contact your merchant processor or shop around for EMV-enabled equipment. If you recently switched over, you may find you need to educate both employees and customers about the new system.
“There could be a need for some customer training as they get used to the transaction times at checkout,” Bernard said. EMV transactions take a little longer than traditional magnetic-stripe credit cards. MasterCard and Visa are working to speed up the process, said Bernard.
To learn more about finding the best merchant processing solution for your business, attend the Manta Trends webinar “Credit Card Processing: How to Save Money & Improve Sales.”