Are you ready for EMV?
Well, it’s already here! The major U.S. credit card providers – VISA, American Express and MasterCard – are moving away from the magnetic strip card which uses 1960s technology and moving to the microchip payment card for more advanced security against fraud. The new chip cards are based on a global card payment standard called EMV, named after Euro pay, MasterCard and Visa who created the standard. Chip cards are now used in more than 80 countries and more than 3.4 billion are in use around the globe today. The U.S. is currently in the process of migrating to the chips cards which will be used in smart cards, point-of-sale (POS) transactions and automated teller machines (ATMS.)
Did you know…?
According to NASDAQ.com:
- Most card fraud occurs in the United States
- A 2015 research note from Barclays stated that the U.S. is responsible for 47 percent of the world’s card fraud despite only accounting for 24 percent of total worldwide card volume
- Identity fraudsters bilked $16 billion from 12.7 million U.S. consumers in 2014.
And StatisticBrain.com says that credit card fraud worldwide totals over $5.5 billion.
So what does EMV mean for you and your business?
For one thing, it means new instore technology and processing systems. In other words, you’re going to need new POS card readers. To get chip-enabled for your business, you’ll need to contact your acquirer or payment services provider.
For another, it means a change in liability for credit card fraud. Today, if an in-store transaction is conducted using a counterfeit, stolen or otherwise compromised card, consumer losses from that transaction generally fall back on the payment processor or issuing bank, depending on the card’s terms and conditions. But as of October 1, 2015, a deadline set major U.S. credit card issuers including MasterCard, Visa, Discover and American Express, liability for card-present fraud will fall to whichever party is the least EMV-compliant in certain fraudulent transactions.
Protect your business and find out how to comply.
The SBA is committed to making sure small business owners understand what this transition means for you, your business, and your customers. They are offering webinars like the one listed below to help you know what to do to make this a smooth transition for your business.
Stay informed! Follow the link to register.
10/14/15 @ 2 pm ET – EMV 101 What Small Businesses Need to Know About the Switch to Chip Card Technology SBA and Square have teamed up to offer a free webinar to help small businesses across the country navigate the upcoming transition to EMV chip card technology. Topics covered include what the transition to EMV chip card technology means for small businesses; what EMV chip card technology is and why it’s more secure; and how to prepare for new fraud liability rules impacting merchants beginning October 1, 2015. Registration is free but required. Click here to register.
Or you can watch a previously archived webinar today.
Payments Fraud Trends and the U.S. EMV Card Migration – What You Need to Know
Financial institutions and their customers are targets of ever-evolving fraud schemes. This is a concern for small businesses seeking to protect their organization’s payment transactions. Join SBA and representatives from the Federal Reserve for this special presentation to help small businesses learn more about payment instruments that are most vulnerable to fraud schemes, fraud-fighting tips, and an update on the October 1st U.S. migration from magnetic strip to EMV cards and what it means for your small business.
The folks at Freedom Insurance care about your business. Call us today for answers to all your business insurance questions!