Credit Card Chip Deadline Approaches for U.S. Retailers

Posted on

Is your small business ready for the credit card chip deadline? October 1, 2015 is the deadline for all U.S. retailers to have the EMV standard in place. EMV, also called “chip and pin,” is the newest standard for payment cards. EMV stands for EuroPay, MasterCard, and Visa, the 3 companies who created the chip technology standard.

New cards being produced under EMV specifications contain a computer chip to store card data on instead of the typical magnetic strip that you would see on the back of credit cards. The EMV technology is already a standard for retailers in other countries but the U.S is behind on implementing this new technology.

More than $8 billion is the estimate for credit card fraud in the U.S. each year. Europe has been using a chip and pin number verification system for purchases for years and has considerably less fraud.

If you are a small business owner in the retail industry and you do not have the new EMV technology ready by October 1st then you could be held liable for any fraud that occurs. If there is a breach or any fraudulent compromise of customer payment data, you as the retailer will be on the hook for 100% of the compromised transactions.

For businesses that accept credit cards, the switch to EMV involves adding new in-store POS and office technology to accept the cards and learning how to use it. Visa projects that 47% of the merchant card reading terminals in the U.S. will upgrade to EMV chip technology by the end of 2015.

Don’t let your customers be vulnerable to fraud or let your company become liable for any credit card fraud that occurs. Make sure your business is ready for the October 1st deadline.

To learn more about growing and running your business, please contact an Inc For Free Representative today at 1-877-462-6366, Monday thru Friday, 8 am – 5 pm PST.

Update

Things have changed quite a lot since 2015, especially with the rise of COVID-19 forcing business to do business a little differently. As the business owner, it’s your job to ensure your startup stays up-to-date on the latest trends.

One major change that’s taken place since this post was originally written is the use of contactless mobile wallet apps to pay for goods. 

This new payment method uses near field communication (NFC) to transmit information from a mobile device to a payments reader. Completely contactless, this method is a type of radio frequency identification technology that allows your smartphone and a payments device to talk to each other wirelessly to complete the payment.

If that sounds like a security risk, just know that mobile wallet payments transactions are not only just as secure as EMV, they’re a lot faster. You’ve probably noticed that the whole EMV chip process takes quite a while. NFC mobile payments, on the other hand, take just seconds. And they’re a lot more convenient — customers don’t need to carry around a physical wallet, just their smartphone. As a business owner, you can start accepting mobile payments by purchasing an affordable NFC reader like the Square contactless and chip reader.

Here are some popular mobile wallet apps your business should start accepting to ensure you don’t miss out on a sell:

Apple Pay: Available on the iPhone and Apple Watch, Apple Pay allows users to upload and save their debit/credit card information. To make a payment, the Apple Pay app is opened, the iPhone or Apple Watch is placed over the payment reader. Users must keep their finger on the Touch ID pad on their phone in order for their identity to be verified and their payment completed. All in all, this process takes just a few seconds to complete.

Android Pay: Similar to Apple Pay, Google’s mobile wallet technology, Android Pay, is available on all NFC-enabled devices that run Android version 4.4 or later. To use Android Pay, customers simply open the app on their phone and complete the transaction by holding their device over the payment reader.

Samsung Pay: To use Samsung Pay, customers open the app and then hold their device over the point-of-sale terminal. This technology is available on the Samsung Galaxy S6, Galaxy S6 Edge, Galaxy S6 Edge Plus, and Galaxy Note 5.

In order for your business to be able to accept mobile payments, you must have a payment reader that recognizes these non-traditional payments. Square is the most widely-used payment reader that can open up more ways for your small business to be paid.

Square accepts mobile payments and has nine different online payment methods for you to choose from including an app marketplace that’s continually expanding.

On a superficial level, Square payment readers are super sleek and sophisticated, giving your small business a modern feel that appeals to many consumers.

Update how customers can make purchases and never miss another sell!