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EMV cards are quickly becoming the new standard for credit card transactions. These cards have a microchip that protects against credit card fraud. Cards have already been issued to nearly 120 million Americans, and they are projected to reach 570 million by the end of the year. In order to read the cards, businesses must switch their POS systems, internal processing systems, and understand new liability rules.
EMV cards are a newer technology greatly reducing the incidences of credit card fraud. Major countries all over the world already use these cards. The U.S. is the last large country to adopt this technology. Currently, the U.S. sees almost half of the world’s credit card fraud, so it’s time we start taking steps to prevent it.
The “liability switch” date is set for October 1st of this year and any businesses that have not switched by then will be responsible for any fraudulent charges that occur on their old POS terminals, when the customer uses an EMV card. By the end of 2015, it’s estimated that 70% of credit cards issued will be EMVs. If your POS system can’t read these cards, you may end up losing business.
Businesses are strongly encouraged to switch by October of this year, though the process to get every U.S. business EMV ready will be more gradual in nature. There will be a transitional period over the next few years where some cards with traditional magnetic strips will scan until all U.S. businesses get on board.
Businesses who want to make the switch need to buy a new POS that scans the EMV cards. Some POS brands make add-on component readers that integrate into pre-existing systems, while others are making entirely new terminals. Many popular POS system brands have new terminals ready to go and they only cost $500 on average.
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