What is EMV?
If you are a retailer, financial institution, or a regular old Joe who accepts credit cards for payment, you should be well-aware of the “Payment Network’s Liability Shift associated with EuroPay, MasterCard, and Visa (EMV)” (para. 1). October 2015 is the highly-anticipated date in which you and your POS devices will need to be EMV-compliant.
This is a global effort to reduce financial fraud by embedding smart chips within new EMV-compliant credit and debit cards, allowing financial transactions to work across many cards and devices around the world. With over 15.4 million POS terminals in use internationally, these chips will allow interfacing with the various POS terminals possible (para. 2).
How could EMV compliance affect you?So what’s the big deal and why do you need to jump on this train? Two words: LIABILITY SHIFT! You, as an issuer or merchant accepting payments made with EMV-compliant cards using a non-EMV compliant device, are now assuming all liability for any transaction found to be fraudulent. The term “issuer” refers to banks, credit unions, and any other financial institution issuing credit or debit cards (para. 6).
Spending $1,000 on a new POS device seems pretty cheap compared to the price of fraud mitigation. In the U.S. alone, an estimated $10 billion in card-fraud related costs is anticipated for the 2015 calendar year (para. 3). Believe it or not, October is just a short two months away, and poor planning on your part could potentially lead to a very heavy liability price tag.
Protect your customers and yourself and be EMV Prepared! For more detailed and specific information related to your individual business EMV requirements, please contact your credit card device vendor or your bank, as they will have the best information for you.