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Chip Cards are Here: Is it Time to Evaluate Your Point of Sale Hardware?

Chris Allen

EMV chip cards are here!  The October 1, 2015 liability shift for Europay, Mastercard and Visa  (EMV) is in effect. That means your business, if you're not EMV compliant, is now liable for certain fraudulent transactions made at the point-of-sale. Many merchants are still on the fence as to whether they should upgrade their point of sale systems to include EMV chip card technology. This hardware needs to include a mechanism that allows customers to dip, or insert, their chip cards into an EMV reader.  Let's take a look at some of the advantages business owners will gain by evaluating their POS solutions in light of the EMV rollout:

Stronger customer relationships
Consumers want to purchase goods and services from a company they can trust. While this means clients value products of good value, credibility also comes from businesses dedicated to protecting their customers' well-being. Since EMV chips are almost impossible to duplicate, it's more difficult for fraudsters to steal people's personal information and then use duplicated, copied or forged cards fraudulently in transactions. Therefore, not having point of sale hardware with a built-in chip reader leaves consumers wondering why merchants aren't taking steps to protect them. By implementing this type of solution, a business can build better relationships with its current customers while attracting new ones to their secure operation. 1

Cost savings
Although the hardware may cost business owners a little extra money upfront, the amount saved is generally worth it in the long run. The October 1 liability shift now makes merchants liable for certain fraudulent transactions occurring at non-compliant points of sale,2 That includes costs associated with fraud chargebacks. This is a large step for the credit card industry, as liability generally pushed in the direction of card issuing banks. Opting against an EMV reader could have negative consequences for your business, particularly if you're business is susceptible to point of sale fraud, as increased financial liability can hit your patience and your bottom line.

Access to new forms of payment
It's understandable that merchants are hesitant to switch to EMV point of sale hardware. With so many new-fangled payment regulations and inventions on the market, it's difficult to know what will be important 5 to 10 years down the line. Will business owners constantly be required to upgrade to the next best thing? Luckily, introducing a chip card reader may also open your business up to additional new technologies such as near field communications (NFC). NFC is the technology that enables device-driven payments such as Apple Pay. Most EMV-enabled terminals and POS devices also enable contactless and mobile wallet transactions, making purchase that much easier for consumers regardless of what's in their wallets. When customers know they can visit one organization for all their needs and it will be efficient, they're more likely to return in the future.

Now that chip cards are here to stay, it's crucial for merchants to analyze their current POS system to see how it can be approved. In the majority of cases, a transition to an EMV reader will benefit both business owners and their clients.

  1. http://www.entrepreneur.com/article/244354
  2. http://blogs.wsj.com/corporate-intelligence/2014/02/06/october-2015-the-end-of-the-swipe-and-sign-credit-card/

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