It’s likely you’re seeing lots of chip-embedded cards at your business these days, but did you know that along with those new cards came a fraud liability shift that potentially poses a risk for your business?
The bottom line: Depending on the payment network, merchants who don’t use an EMV credit card terminal could be responsible for fraudulent transactions if they occur. Fraud can can create headaches for you and your customers, so arm yourself with information about how this switch in technology impacts your business.
Each year, $8.6 billion is lost due to credit card fraud in the United States. To battle this, the U.S. adopted a European “EMV” standard that uses a microprocessor chip embedded in the credit card to store data. The chip is more secure than a traditional magnetic strip, which can be easily counterfeited. As more and more cards are issued with these microchips, merchants will require new processing terminals that can read the EMV-compliant cards.
Facing the Consequences
Without EMV chip terminals, you’re opening your business up to potential liability resulting from fraudulent transactions. If you’re not EMV-compliant and a fraudulent card is used at your business, you may be responsible for the charges as well as any fines.
Having the right information in hand can help you protect your business. Learn more about selecting a processing vendor and how credit card transactions work.