On Oct. 1, companies like Mastercard, Visa, Discover and American Express will implement what’s called a “liability shift.” That means that business owners who do not upgrade their systems to accept new EMV chip card technology at their point of payment will be liable in cases of credit card fraud.
Chip cards, which look like a regular credit or debit card but come with an embedded microchip, have been shown to greatly reduce the chance of the card being counterfeited in Europe and Canada. Instead of swiping their cards, your customer would instead slide it into the point-of-sale terminal until their transaction concluded.
Last month, MANTA (an online resource dedicated to small business), surveyed more than 1,700 small business owners and found that less than 9% had switched over to using EMV in preparation for the Oct. 1 liability switch. MANTA’s findings are in keeping with a Wells Fargo survey released Thursday that found that more than half of business owners weren’t even aware of the EMV switchover.1
According to MANTA, why are small business owners so slow to make the transition to EMV?
- My business does not process payments from credit or debit cards: 40.23 percent
- I don’t see enough EMV cards from my customers to make it worthwhile yet: 16.39 percent
- EMV card readers are too expensive: 2.9 percent
NXGEN has been at the forefront of educating small business owners about EMV and offering the latest technology at an affordable price. Are you ready for the October 1 Liability Switch? NXGEN has your EMV terminal solutions.