EMV Credit Cards Prevent Brick and Mortar Fraud
In October 2015, a seismic shift took place in the retail space. Retailers became liable for any fraudulent charges made unless they had switched to EMV technology. Previously, credit card companies bore the liability for these charges. The liability shift that took place in October 2015 was an attempt by credit card companies to encourage the adoption of EMV credit cards. Read on to learn why EMV credit cards reduce fraud and the advantage they provide to bricks-and-mortar retailers.
Why Are EMV Cards More Secure?
The term “EMV” stands for Europay, MasterCard, and Visa. The acronym represents the three companies that developed this technology.
EMV cards are embedded with a microchip that contains account information. When the customer inserts the card into a terminal, the account information is encrypted as it travels over the network. Encryption means that the data is turned into an unbreakable code. As a result, if hackers succeed in infiltrating a company’s digital defenses, they won’t be able to see customers’ credit card details.
Why Are EMV Cards Better for Bricks-and-Mortar Retailers?
Magnetic swipe cards (the kind of credit cards that have been used up until this point) put retailers and consumers at a disadvantage.
For a start, they’re not encrypted. So, when data travels over a network, anyone can see them, including hackers. Secondly, they’re easy to counterfeit. Criminals can create many fake magnetic swipe credit cards and go on a shopping spree. Who’s left paying the bills? Under the new rules, retailers are.
Since bricks-and-mortar retailers in the US began implementing EMV card readers, they’ve seen a decrease in fraud. In January 2016, Visa announced that retailers who used such card readers noted a 26% year-over-year reduction in the dollar volume of counterfeit fraud.
What If You Haven’t Adopted EMV Technology Yet?
Many retailers missed the October deadline for implementing EMV card readers. There were a few reasons for that. They didn’t want to shoulder the expense of buying new technology, or they were on a waiting list for equipment installation and certification.
For the retailers who are on waiting lists, credit card companies are shortening the period it takes for equipment to be installed and certified. In addition, they’ve reduced or gotten rid of chargebacks under a certain amount, so retailers take on less of a burden of counterfeit card use. These moves should make adopting EMV technology more attractive to bricks-and-mortar retailers.
Power Pay Payment Processors: We Help You with EMV Card Technology
If you’re a bricks-and-mortar retailer interested in implementing EMV card readers, contact Power Pay Payment Processors today. We offer affordable, state-of-the-art EMV card readers that will keep your customers’ data secure and reduce your fraud liability. Power Pay makes setting up a merchant account fast and easy – you can begin accepting credit cards in as little as a day! There are no hidden fees, and we’ve got some of the lowest rates in the industry. Call us today at 1-800-483-8815 to learn more.