The major credit card issuers each have published detailed schedules about the upcoming shift in liability. The change is intended to help bring the entire payment industry on board with EMV by encouraging compliance to avoid liability costs. Any parties not EMV-ready by October 2015 could face much higher costs in the event of a large data breach. (Automated fuel dispensers will have until 2017 to make the shift to EMV. Until then, they will follow existing fraud liability rulings.)
The change is happening for a number of reasons. First, the last few years have seen massive data leaks at large brick-and-mortar and online retailers. Chip cards will make it nearly impossible to do anything with illegally acquired credit card numbers because of the increased security protocols. Every time a card (or phone) is used to make a purchase or complete a transaction, the imbedded chip will register a unique identifying code for that transaction. Even if someone does happen to steal credit card information, EMV compliant machines will identify the unique transaction code present as having already been completed and thereby deny any attempts to utilize the card. Only the original chip can/will register a new transaction on behalf of the user/owner. This technology is coupled with additional security features like personal identifying numbers (PIN's) and/or electronic signature capturing.
Second, the majority of the world has been using these cards for years, and it’s becoming more difficult for travelers from the US to find businesses that take non-EVM cards. Third, the increased protection from fraud offered by EVM cards has led banks, credit unions, and other financial institutions to shift the liability from themselves to the merchants for any fraud resulting from transactions using systems other than EVM-capable devices.
Fortunately for you, we can help you assess what a smart card payment enablement plan would look like for upgrading all consumer-facing POS devices in your business (if you haven't already). Our third-party POS software providers have already implemented a comprehensive strategy to become EMV compliant, and our preferred processors are already handling smart card processing!
We would be happy to discuss other ways you can reduce fraud and data theft risks as part of a comprehensive payments security plan. Simply fill in the information on our CONTACT US page or give us a call. We are always honored to help.