2 years have been down that the EMV liability shift among businesses took place. Although there are some big shot retailers like Target, Walmart and Macy’s which have already adopted this new technology, few other businesses hesitate to embrace this because they’re either concerned about a slow checkout experience, they wonder that the new equipment will not be cost-effective or they’re happy with the current way in which they process cards.
However, little do they know that the benefits of switching are clear for consumers and merchants. If you’re not aware of them, here are some that you may consider taking into account.
- Safeguards your business
With the introduction of the EVM liability shift, the liability for chargebacks are transferred from the banks to the merchants whenever there are occurrences of fraudulent transactions unless and until the merchant is EMV compliant. The merchants even run the risk of losing money while accepting credit card payments in case their customers need to use magnetic swipe on the debit or credit cards instead of chips. However, besides capital, you will also be risking your business’ reputation.
- Shields your customers from credit card theft
Since 2016 August, 80% of the credit card consumers in the US have chips and this represents a 90% boost in the adoption rates of chips sine 1st October, 2015. As a result, there are also an increasingly large number of people who are using their chip cards to prevent their financial details from being stolen. Since the customers are always worried about such instances, they might even stop coming to you. Hence, if you don’t wish to lose customers, help them build trust on the checkout process of your company. Switch to EMV technology and take a look at SumUp for EMV card readers which can build trust.
- Enhances security
You must be wondering about why the entire nation and all the customers would use chip credit cards instead of the magnetic strip ones? The main reason is to eliminate fraud. EMV chips are small computer chips which can be read by credit card readers which are EMV enabled. The chips have a unique code which can’t be copied easily, unlike the magnetic strip which is easily copied through the skimming device.
Will fraud really go away with the introduction of EMV?
Whenever you use your debit card, you have to enter the 4-digit PIN code in order to successfully complete the transaction. In the US, credit cards need a sign instead of a PIN but in Europe, they need a PIN both in case of debit and credit card. When the US adopted EMV, the credit card issuers opted for Chip cards and Signature cards rather than PIN and Chip to avert a confusing change for the consumers. This clearly means that stolen cards can effortlessly be used online and in stores. If it were chip and PIN, in-store and online fraud would have reduced.
Therefore, now that the entire nation has adopted the EMV chip cards, you too have to follow the herd. However, remain aware of the pros and cons of the same.