EMV chargebacks are becoming a huge issue for companies across all industries. However, the hardest hit are small businesses and new companies, whose operational cash flow is too small to be able to handle these discrepancies on a regular basis. For businesses like this, even just one EMV chargeback can have major financial ramifications.
How EMV Benefits Your Business
While it may be a significant expense to upgrade to a new EMV-enabled system, especially when your business is in its earliest stages, this technology can save you huge amounts of money in the long run. Now that EMV has been implemented throughout the United States, merchants who have not upgraded will now be liable for fraudulent purchases, rather than the company that issued the credit card. If you mistakenly accept counterfeit credit cards, you run the risk of having to foot the bill for those purchases yourself. Upgrading to an EMV system is the most significant step you can take to protect your business. The initial setup fee is definitely worth it for all the additional expenses and headaches you will save yourself from down the road.
How EMV Benefits Your Customers
In the wake of recent hacking attacks on large corporations, it is no wonder that customers are becoming increasingly more discerning when it comes to choosing where to spend their hard-earned money. If your business does not offer EMV protection, your potential customers may just pass you by in favor of another business that was willing to invest in their customers’ security. Conversely, if it is your business that can process EMV cards, you may be able to convert your competitors’ customers into your own, which can greatly increase your revenue and profits over the long term. In the early stages of your business, you cannot afford to lose customers for any reason, least of all over something as simple as an upgraded credit card processing system.
Preventing EMV Credit Card Fraud
Until you are able to make the switch to an EMV system, there are a number of steps you can take to protect yourself from EMV chargebacks. Always check the customer’s ID when processing a credit card transaction, and make sure the name and face on the ID match the credit card and customer. Verify the customer’s signature against the one on the ID as well. If anything seems suspicious, ask for another form of payment, such as cash or a debit card with a PIN number. If you do have an EMV machine, always run chipped credit cards through the EMV reader. Do not swipe them with a standard magnetic reader. Also, never override a declined payment. These are all common signs of fraudulent EMV cards. By enacting these easy practices, you can protect your business from EMV chargeback issues and save your company a lot of money.
Overall, the security benefits of chip-enabled credit cards far outweigh the initial setup cost. Your business should strive to make the upgrade as soon as possible to reduce your risk of the high costs associated with chargebacks and to provide additional security value and peace of mind for your customers.