Printer Friendly

Becoming EMV-compliant: chip-enabled payment cards change the landscape for merchants.

There's been much discussion and attention surrounding the payment networks' liability shift associated with Europay, MasterCard and Visa, or EMV. Already a common technology in countries across the world, it became the new payment standard in the United States in October.

EMV chip-enabled cards add an additional layer of fraud protection for consumers. The cards contain an embedded microchip that turns cardholder information into a unique code every time the card is inserted into a card reader. Overall, the goal of EMV technology is to decrease the potential for counterfeit card transactions, enable secure transactions and prepare for contactless payments.

If you're a merchant, there are a few things you need to know to become EMV-compliant.

According to Javelin Strategy & Research, about 10 percent of U.S. small businesses were victims of payment fraud, including the type of credit card fraud the switch aims to prevent, in 2013, the most recent data available.

Previously banks covered these charges, but in October, liability for fraudulent transactions shifted to the merchant.

This has the potential to be truly detrimental to a business' finances and is a key reason to adopt the new payment standards. Upgrading to EMV standards also ensures a business will be able to accept almost all payment methods.

It's important to consider the day-today impact that the EMV transition will have on consumers. Consumers will be faced with an entirely new payment process, not all EMV payment terminals are identical and not all businesses will have them in place come this fall.

As a result, merchants will be the linchpins to making this transition a success.

Peace of mind

According to a recent Aite Group study, however, one-third of small-to-mid-sized merchants are unaware of the migration to EMV chip technology.

If you're a small business owner or merchant, it's in your best interest to update your point-of-sale system to accept smart cards. Here are some tips when making the switch to EMV payment terminals:

* Investigate your technology options: When making a technology investment for your business, it's critical to research and explore the different options. It's worth your while to do the same when looking for new EMV-compatible payment terminals. Merchants should choose the most appropriate technology that meets their unique business needs and customer payment preferences.

* Seek EMV training: To make the adoption a success, business owners should commit to training staff on the new features and functions of the EMV equipment. According to the U.S. Census, as of 2012, New Hampshire employed over 284,000 small business workers. That's a great deal of employees who could benefit from learning the ins and outs of the new transaction process.

Be sure to ask your financial institution if it offers EMV training and take advantage of their expertise. A training session can ensure transactions happen quickly and smoothly.

* Invest the time: While the switch will indeed require a time commitment and up-front investment, adopting an EMV-compatible payment terminal is a smart business strategy. Not only is it a more secure transaction for consumers, but it decreases the burden on business owners in the event of a compromise.

* Create a better customer experience: Keep in mind that consumers may be faced with different payment terminals when visiting their local merchants. Create a better customer experience by practicing patience during the EMV transition. Consider it as another touch point and way to build trust with your customer by offering guidance through the new payment process.

EMV provides peace of mind for consumers because it's a more secure payment process. Merchants with EMV terminals will require customers to insert the card, write their signature or enter the PIN, and not remove the card until the transaction is complete. This makes the EMV payment process a more secure transaction for consumers, and a smart strategy for businesses.

Julie Pukas is the head of U.S. bankcard and merchant services at TD Bank.
COPYRIGHT 2015 Business Publications, Inc.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2015 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Title Annotation:Breaking Innovations; Europay, MasterCard and Visa
Author:Pukas, Julie
Publication:New Hampshire Business Review
Geographic Code:1U1NH
Date:Oct 16, 2015
Words:650
Previous Article:Aging baby boomers pose problem for employers: Health Care Forum explores state's changing demographics.
Next Article:'Time is now' for action on manufacturing: keynoter at governor's summit stresses New England's advantages.
Topics:

Terms of use | Privacy policy | Copyright © 2019 Farlex, Inc. | Feedback | For webmasters