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FYI………EMV Deadline Looming For Small Businesses

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Something small businesses don’t know that could cost them a bundle next week!

Beginning October 1st, there is going to be a shift in responsibility of who is liable for fraudulent card transactions. Small businesses can be held liable for customer credit and debit card fraud if they don’t have a terminal that complies with Europay Master Card Visa (EMV) chip based standards that can read chip enabled cards.

Here’s the rational

When card fraud happens, whoever is using the “lesser” technology will be responsible for the liability. If a merchant is still using the old swipe and signature method, they’ll be liable if the customer has a chip card. On the other hand, if the retailer uses a new terminal, but the bank hasn’t issued a chip card, the bank will pay up.

Here’s the challenge

Too many small business owners are unaware of this liability shift and the October 1st EMV deadline. Others are putting off purchasing the new equipment because of the cost. It is very risky not having the chip reading terminals because it can be even more expensive getting whacked with the charge-backs from the fraudulent use of cards in your business.

0 thoughts on “FYI………EMV Deadline Looming For Small Businesses

  1. does anyone know if this would include readers used on phones like”square”

    1. Very good question! I don’t know, but maybe Mr. Google does 🙂

  2. What if people are giving you their numbers over the phone or I always type in the numbers rather than using the swipe method? How will the liability work in those cases? I also use “square” but had been told, by a bank president, over a year ago not to use their swipe method because of safety reasons, but they said then that if I typed in the numbers it would be as safe as any other method at that time. Thank you for your help.

    1. If people give their card numbers over the phone, it does not increase their liability for fraudulent use of their card. Interestingly, in Europe where they have been using the Chip for some time, point of sale fraud has declined, while fraud by thieves using stolen numbers have increased over the phone.

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