Credit card technology in the United States is undergoing a transition from magnetic strips to EMV chip cards. What does this mean for your business?
Starting this fall (October 1, 2015), businesses must accept credit cards with a chip-reading terminal if the customer presents an EMV-enabled card. Some cards may have both the magnetic stripe on the back and the chip on the front. In this case you, should still process payments using a chip-reading terminal.
Why is this so important? If you do not process transactions using a chip-reading terminal, your business will be liable for any fraudulent chip card transactions, if you process an EMV chip card with a magnetic stripe reader.
If you don’t have a chip reading device, ask your merchant processor for a new reader. Most processors (Square, PayPal Here, etc.) probably gave you a free reader that plugged in to the audio jack of your mobile device. These devices will continue to work, but you need to be aware that liability for fraudulent transactions will now be the responsibility of the merchant, not the issuer.
New readers that accept EMV cards may cost a small fee ($49), and most of these devices now include the ability to accept payments via NFC payment methods, such as ApplePay.
If your small business does not already accept credit cards, reach out to one of our consultants through our contact form, or send us an email and we can help set this up! We have many years of experience in this field, and can also assist with the accounting, webpage integration and mobile setup of accepting credit cards.
We look forward to hearing from you!