Swiping credit cards will soon be a thing of the past. If your business isn’t ready, it won’t just be left behind — it may become history, too.
The deadline to implement EMV chip readers is finally here, and merchants who have yet to make the switch will be held liable for fraud-related losses from purchases made at their stores. The EMV technology, which stands for “Europay, MasterCard, and Visa.” Translation: Credit cards will be equipped with a super-small computer chip that’s extremely hard to counterfeit.
The new cards, which have a small metallic square containing the new chip, are supposed to be more secure than older cards, which rely on magnetic strips that are more susceptible to counterfeiting and data theft. The chipped cards create new transaction codes for every purchase that can’t be used again. The ever-changing code system is meant to foil hackers.
Instead of swiping the magnetic stripe, the chip cards are inserted into EMV readers or tapped on the devices for verification. In some cases, card users will have to enter personal identification -PIN – numbers.
If you have not changed to the new card readers you may be in for some hefty fines. For instance, if customers are forced to swipe their credit cards because your terminals aren’t equipped with EMV chip readers. By the time you find out about the security breach at your store, an identity thief has already stolen your customers’ information and had the time of his life going on a $50,000 shopping spree. Guess who’s responsible for that $50,000, plus any associated fees and fines? Your business. And it’s totally not worth it.