West Virginia - October 2015 - Chip Cards Switch
Mark your calendars, the date is set: in October 2015, the United Sates will switch to Chip Cards.
The new standard is called EMV (which stands for Europay, MasterCard, and Visa), and credit cards will have an embedded microchip. This new technology changes how you take payments from your customers.
Change is inevitable, but for the United States, it is long overdue. Consider this: in the U.S., we process only 24% of all credit card transactions, but over 50% of the fraud happens here. One main reason for this is the U.S. is still using the old magnetic stripe technology. According to Nilson Report, August 2013, credit card and debit card fraud amounted to $11.27 billion in 2012, with merchants eating 37% and card issuers eating 63% of these losses. Failing to adopt the new technology shifts the liability to your business.
What does this mean for my business?
1. You need a new “chip enabled” credit card reader.
2. If you don’t have a chip reader in place by October 2015, you could be liable for fraudulent chip card transactions.
How much will it cost me?
It depends on the bank that hosts your merchant account and your equipment needs. You can bet it won't be free!
Explain the change in liability...
Currently, banks and merchants absorb the costs of fraudulent card use. Starting October 2015, banks will no longer be liable for fraud if you can’t take chip cards and someone uses a fraudulent card.
Is it safe?
Much more than magnetic stripe; in fact, the chip card technology has been in use in Europe and most of the world for many years.
How does it work?
Instead of swiping the card, you insert the card into a card reader.
How can Gross Security, LLC help me with chip cards?
We are a technology based, security focused company with graduate degrees in technology and business. We can help you navigate the murky waters of PCI compliance and assist you with developing policy, implementing equipment, and training end users on the new technology.