Start Accepting Chip Cards This Year
Banks, payment institutions, and businesses are starting to transition their payment systems to EMV technology. Due to the rise of technology, our world is growing less safe each year. Business owners are seeing an increase in fraud, chargebacks, and financial burdens. As per Javelin Strategy & Research, the cost of payment for card fraud in the U.S. rose to $11 Billion in 2013. Instead of magnetic strip cards, EMV technology, or chip cards, is the world’s answer to this dangerous dilemma.
EMV, short for Europay, MasterCard, and Visa, is a secure payment technology that uses tokenization to make financial transactions more secure. The chip card embeds the user’s information securely within a chip, and cannot be easily hacked or duplicated like that of a mag stripe. It has a dynamic authentication process that ensures account information is transmitted with a unique security code per transaction. This security code is difficult to duplicate, making it almost impossible for fraudsters to get your personal information.
Since this technology emerged, more and more corporations are starting to transition from mag stripe cards to the new chip cards. As a merchant, the new payment system will definitely affect your business’s everyday transactions. This leads to a push for merchants to become EMV-compliant to increase security for their customers.
Still on on the fence about transitioning to EMV devices?
Here are 10 reasons to start accepting chip cards now!
1. To Protect Your Business from Theft
On September 2016, MasterCard reported a 54% decrease in counterfeit fraud costs for merchants who adapted EMV technology. As mentioned earlier, the new EMV technology is designed to make a more secure payment system for all. The EMV chip card and terminal prevents card skimming, counterfeiting and other costs that come with it.
2. To Reduce Fraud Liabilities
Last October 2015, the U.S. instigated the EMV liability shift. It encourages financial card issuers to replace magnetic stripe cards with EMV or else they’ll be liable for any fraud cases that may occur. This leaves your business without worries of chargebacks.
3. To Stay in the Competition
As of June 2017, VISA recorded 2.3 million EMV-accepting merchants in the U.S. If you’re one of these businesses, you’re still in the game. And if you’re not, better be afraid for you’re starting to get left behind.
4. To Reflect a Good Image for Your Company
The heart of EMV is to protect and provide a securer payment world for everyone. Adapting to this change tells your customers that you are a responsible merchandise and that you care for their sake. And aside from that, it’s a global change that keeps your business in the international loop.
5. To Take Advantage of the Financial Support that Goes with It
Not all businesses can immediately acquire the shift to EMV. But a lot of companies like American Express, are willing to give assistance both financially and educational, especially to small business owners so they can comply to EMV.
6. To Make Your Customers Feel Safe
If you have an EMV terminal, this gives your customers a sense of security. As a business owner, you don’t want your customers to feel afraid to use their cards and make transactions with your business.
7. To Make Your Business the Customer’s Preference
More and more customers are more inclined to make transactions with stores that use EMV terminals. They perceive these stores as responsible businesses that proactively prevent data breaches and any fraud payments. If you don’t immediately comply with this new payments system, this could give your business loss sales.
8. To Turn Away Criminals
Fraudsters are less likely to target businesses that are EMV-compliant. This is because again EMV terminals and cards are difficult to hack. So they will no longer be wasting time planning theft on businesses that are almost impossible to commit crimes.
9. To Provide More Payment Options for Customers
EMV chip cards come with NFC, or Near Field Communication Technology, which uses tiny radio transmitters for tap-and-go transactions. This is the wireless form of EMV. With this, customers can use their phones, tablets, or any NFC-enabled device to pay at EMV terminals. It also gives your customers less reasons not to purchase your products or services.
10. To Do Your Part in Helping Society
Without your participation, EMV will never be a success. No matter how many customers have chip cards, the technology is useless without the implementation of EMV terminals. Do your part in protecting and providing a safer payment system for our society by making your business EMV-compliant and compatible.
Overall, EMV technology was created to help deliver a safer and better payment system for all. But without the support of everyone, this innovation will go to waste. Do us all a favor and start accepting chip cards so everyone can remain at peace while shopping.
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