U.S. credit card companies are making the transition from magnetic stripe technology to cards with chips. Chip cards are payment cards that have an embedded chip, offering increased security when your customers use the chip to pay in store. Chip cards are based on a global card payment standard called EMV, which stands for Europay, MasterCard and Visa, currently used in more than 80 countries around the world. The United States is now in the process of making the migration to EMV technology.
In an effort to reduce fraud, EMV Chips are becoming the standard for integrated circuit cards (IC cards), IC card capable point-of-sale terminals, and automated teller machines. Chip card transactions offer advanced security for in-store payments by making every transaction unique. Chip cards are also much harder to counterfeit or copy. If the card data and one-time card are stolen, the information cannot be used to create counterfeit cards and commit fraud.
For merchants and financial institutions, the switch to EMV means adding new in-store technology and internal processing systems. To get chip-enabled for your business, contact your acquirer or payment services provider.
The switch to EMV also means a change in liability for credit card fraud. Today, if an in-store transaction is conducted using a counterfeit, stolen or otherwise compromised card, consumer losses from that transaction generally fall back on the payment processor or issuing bank, depending on the card’s terms and conditions.
Beginning on October 1, 2015, a deadline set major U.S. credit card issuers including MasterCard, Visa, Discover and American Express, the liability for card-present fraud will shift to whichever party is the least EMV-compliant in certain fraudulent transactions.
Is your business ready? For more information, please contact our office today.
As a CPA, Accredited Small Business Consultant and Advanced Certified QuickBooks ProAdvisor, we specialize in working with small business owners and provide tax, accounting, financial, and small business consulting services. Please call us to help evaluate your small business needs today. Our telephone number is (727) 391-7373, or you can visit us at http://www.LStortzCPA.com.