EMV is a credit card security method that businesses will not be able to ignore much longer. In the United States, many large merchants have already made the switch, but many smaller businesses have not yet done so. For a large number of these organizations, the cost of switching is the primary factor that prohibits them from opting into this secure service. Merchants must purchase the terminal and upgrade their software systems to accommodate chipped credit cards, and this can present a significant expense for a small business. However, the initial cost is vastly outweighed by future benefits of adopting the latest EMV technology for POS upgrades.
Earn Creditor & Consumer Trust
From the business owner’s perspective, the long term savings associated with the added security of EMV are significantly more important than the upfront price tag. Many credit card issuers guarantee their customers complete freedom from liability for fraudulent charges on their accounts. However, as identity theft and credit card fraud become more prevalent, many creditors are changing their policies with regards to covering their customers in cases where merchants do not use the latest security technology, such as EMV systems. In the future, they may hold these merchants accountable for the fraudulent charges due to the organization’s lack of security. This can result in unnecessary expenses for the business, and the cost of a permanently damaged reputation will be significantly higher than the up-front costs of a terminal upgrade.
On the consumer trust side, a chip card terminal shows customers that a particular business cares about their financial security and is willing to do what it takes to protect it. General consumers are becoming increasingly more discerning when it comes to the protection of their personal information, and this may become a deciding factor in which businesses they choose to patronize. Since the customers are the driving factors of a business, no company, especially a small one, can afford to lose customers over something as simple as a new EMV compliant credit card terminal.
Help Fight Fraud
According to a recent article, Payment Services expert Reliance Star points out that EMV non-compliance makes businesses a target for hackers. The Economist reported that breaches involving large organizations such as Target, Adobe Systems, and Neiman Marcus are driving industry changes to encourage businesses to help consumers fight fraud. Continuing the use of magnetic strips will not help fight fraud, as the new chip-and-PIN technology used within EMV technology are far more secure.
Credit card companies are offering resources to small businesses to help them fight fraud. American Express offers case studies and information to help small businesses upgrade their POS technology.
There are many new and improved credit card processing services on the market. A reputable payment services company can provide counseling and advice for its clients with regards to saving money on payment processing fees.