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.