The days of swipe-and-sign credit card processing are dwindling. In the wake of identity theft and large-scale data breaches, both retailers and shoppers worldwide have begun demanding greater security.
Traditional credit cards are being replaced by chip-enabled payment technologies developed by Europay, MasterCard and Visa (EMV). Cards now come along with a smart chip that must be authorized and scanned with each transaction.
The chip interacts with the merchant’s POS device to make sure the payment card, combined with a PIN number or signature, belongs to the person using the card and is valid. This kind of chip technology adds layers of security against fraud and is virtually impossible to duplicate.
The end result is safer retail shopping (and far less credit card fraud). Even if you aren’t concerned about the safety of your credit card processing, the legality of it is important. As of October 1, 2015, the financial liability resulting from fraudulent counterfeit, lost or stolen card-present transactions falls on the merchant in the case that the merchant’s terminal is not enabled for a chip and someone uses a chip card.
While there is no law that says you must switch to EMV-enabled equipment, the liability could fall to you, costing you the time and money surrounding a lawsuit.
Still confused? Luckily, BluePay has created a helpful infographic that sheds light on this new liability shift:
For additional information regarding EMV Credit Card Processing, check out BluePay.