EMV, which stands for the three organizations that developed the original specifications (Europay, MasterCard and Visa), is almost underway across the country to help cut down on credit card fraud. According to a 2013 Nilson Report, nearly half of all credit card fraud happens in the United States. The EMV technology, which has been used in Europe for years, moves away from the traditional magnetic stripe that’s easier to counterfeit. In fact, EMV is the standard in Europe where 99.9 percent of point-of-sale terminals are chip-enabled. The United States is the last major market to adopt the trend.
But what does that mean to you as an entrepreneur? Here’s what you need to know about the change happening on October 1.
How Will EMV Affect Your Business?
Starting in October, all businesses will need a new processing device to read the chip inside of EMV credit cards. If your company doesn’t upgrade your processing devices, you may face consequences, known as the liability shift. Unlike in the past, if you run a fraudulent credit card, the banks will no longer be liable. Instead, you will be accountable for the cost or chargebacks.
There are a wide range of processing devices on the market today, but Sage Payment Solutions stands out. Sage Payment Solutions has been preparing for the EMV shift, and once it rolls out on October 1, you can rest assured that you’re covered if you’re using Sage processing. The company has guides to prepare your business and reduce this transition’s impact. Sage also emphasizes that EMV provides more secure credit card transactions and reduces chargebacks.
Communicating the EMV Transition
This technology is new to both entrepreneurs and consumers. Educating your customers should be your first priority. Instead of swiping, customers will now dip their credit cards into processors for each payment transaction. Expect checkout times to be a little slower at first, as it’s likely that there will be some confusion. After a few transactions, your staff and consumers will understand just how EMV works.
Training Employees to Be Experts in EMV
The most important people to your business are the ones who are on the front lines, interacting with customers on a day-to-day basis. Although you might be well versed in the new EMV shift, your employees may not be. Make sure that you provide training to your staff so they know about EMV, how to handle transactions and how to answer customer questions about the new credit card chip technology. Also, it’s wise to familiarize staff members with all chargeback, cancellation and return policies.
As a business owner, it’s important for you to know about the transition to EMV. Reduce your risk of liability if fraud occurs at your company, and make sure your employees and customers know what to expect in October.