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Some Small Business Owners Still Ignoring EMV Compliance
20September

Some Small Business Owners Still Ignoring EMV Compliance

Written by Louis Georgakakis, in Category Payment Processing

What is the Consequence for Non-compliance?

What does EMV compliance mean to small business owners? It means that "liability" has shifted from the credit card issuing bank to the small business owner. This is a big deal, yet most small businesses have not upgraded their POS systems to the new EMV technology.

What "liability" are we referring to? Specifically, the liability of credit card fraud is now on the small business owner. It means that it is only a matter of time when the small business owner will be hit with a large chargeback from a fraudulent transaction, and now they will be responsible for the cost and not the credit card issuer.

There has been a lot of information circulating about EMV compliance for quite some time. EMV technology has been around forever. The only thing new is that all merchants accepting credit card payments must upgrade their credit card terminals with EMV technology. 

Unfortunately, many small businesses report that they do not plan to upgrade and are ignoring the call for compliance. Based on recent surveys, and industry reports, many small business owners are ignoring this issue, and they give several reasons why. Industry experts do not think "ignoring" the issue is a wise decision. 

Protect Your Customers by Becoming EMV Compliant

According to the banks who issue credit cards, by the end of the year, fifty percent of all credit card users will have cards with EMV embedded chips. Most consumers know that these EMV chips are supposed to make credit cards more secure.

Consumers seem to be very happy about the EMV technology, and many report that they feel somewhat protect with the chip embedded cards. However, what will happen when EMV credit card users attempt to make payment with a small business that failed to upgrade their POS system? Will the small business lose these customers? We would think that they would lose some. Why take that risk?

A majority of non-compliant small businesses report that the "cost of upgrading" their POS systems is the main reason they have not upgraded their credit card terminals. We can assume that the cost of one fraudulent transaction could be a lot more than the cost to upgrade.

Perhaps some small business owners will wait until they are liable for fraud, costing them a great deal of money, and then get serious about upgrading. Or, they will hear of horror stories from other small business owners who experienced a credit card fraud nightmares due to non-compliance - then out of fear they will take action. 

It is our recommendation to all small business owners to upgrade their POS systems to become EMV compliant. We believe that their customers will be grateful, and they might even attract new customers by becoming EMV compliant. At the very least, by upgrading to EMV technology small businesses can avoid being liable for fraudulent credit card transactions.

contact a merchant service company immediately, and become EMV compliant. Some merchant service providers are offering free credit card terminals. For more information about EMV compliance and POS upgrades, call 877-462-7486 and start the upgrade process.

EMV "Chip Card" Payments from Pivotal Payments

EMV "Chip Card" Payments from Pivotal Payments from Pivotal Payments on Vimeo.

For the convenience and benefit of our readers, we have shared a few older stories still relevant to EMV compliance for small business owners below.

Some Small Business Owners ‘Ignoring’ EMV

Originally posted on TMG Blog by Brandon Kuehl

Although the October 1st, fraud liability shift deadline has passed, 78 percent of small and medium-sized businesses (SMBs) have yet to adopt EMV-compliant credit card processing systems. Of that 78 percent, 23 percent call converting their point of sale (POS) terminals “unnecessary.” This is perhaps explained by low average transaction numbers.

Besides the  SMB's saying EMV is unnecessary, another 34 percent said they don’t have time to research and implement EMV. Thirty-three percent said it’s too expensive to adopt, and 10 percent were unaware of EMV despite substantial levels of EMV publicity.

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