3 Things You Need to Know About the Upcoming EMV Deadline TODAY
There’s nonstop conversations taking place about the upcoming EMV deadline approaching… yet still, despite the nonstop chit-chat, many retailers are unaware of what this really means.
What Does EMV Stand For?
To start, EMV was brought to life by Europay, MasterCard, and Visa. Hence, E M V. Their combined interest was to increase credit card security through chip-based payment cards, which have existed in other countries for some time and have taken a longer time to adapt in the United States. To help clarify this even more, whenever a credit card is used with the “chip” in it, this chip creates a unique transaction code. You should also be aware that a magnetic stripe will still exist, however this new chip will enhance it. As a result, customers and merchants alike gain an enhanced security that decreases the chance of fraudulent transactions.
Who Uses EMV Already?
RICS Software recently reported in the April 2015 edition of Retail Minded Magazine that “the United States is a little late to the party” when it comes to EMV.
Globally, almost 30% of all transactions involving cards are EMV. In Europe, 99.9% of terminals are chip-enabled; the same is true for 84.7% of terminals in Canada, Latin America, and the Caribbean. Right now, the United States only accounts for .03% of global EMV transactions, while a whopping 47% of all card fraud occurs in the United States,” explained Jason Becker, CEO of RICS Software, in Retail Minded’s April 2015 Special Edition: Point of Sale.
With 47% of all card fraud occuring in the United States, it seems to clear that the United States really has been late to the party when it comes to incorporating EMV into credit cards… which also means gearing up retailers of all sizes to be prepared for the switch.
What Do Retailers Need to Do to Get Ready?
Very simply, merchants need to act now to avoid headaches – and even fines – later if they are not prepared to both accept and process EMV cards. As Becker further explains, “to prevent being liable for fraudulent transactions, retailers need to ensure that they can process EMV-compliant cards.”
To be sure you’re prepared, schedule a conversation NOW to speak with your current integrated payment card gateway representative. Reaching out to your point of sale company is a great start, as well, as they can often guide in the necessary next steps. While some companies may offer complimentary hardware updates, other providers may not… so it’s best to know what upcoming expenses may be in your future, as well, so you can plan ahead.
There’s no time like now to help avoid some headaches – and financial penalties – later. So rather than wonder if you have to do anything, know that you must do something. And that something starts with you reaching out to your point of sale and payment gateway representatives… NOW.
To learn more about EMV, check out the April 2015 issue of Retail Minded Magazine here.