NYLON – Starting October 1, 2015, the coming payment liability shift associated with Europay, MasterCard and Visa (EMV) will take effect.
According to a press release from Steven Miller with Electronic Merchant Systems New York (EMS), credit and debit purchases are increasing every day, so credit card transaction security is of the utmost importance to all businesses.
“All business owners have the responsibility of doing everything possible to ensure safe and proper handling of both the transaction as well as the physical card itself,” said Steven Miller with EMS. “Management and staff should be trained as well as continuously observed to reduce the opportunity for internal breach. The PCI security standards organization requests this in every merchant’s annual PCI self-assessment questionnaire.”
EMS says that the drive behind this update is to reduce card related financial fraud. The European Central Bank (ECB) reports that fraud in the single euro payments arena (SEPA) fell 7.6% between 2007 and 2011 and point of sale terminals fell by 24%. The 2008 Canadian introduction of chip and PIN had a dramatic reduction of fraud. Card skimming accounted for losses totaling 142 million and reduced to 38.5 million in 2009, according to figures provided by Interac Association.
Currently, in-person purchases made utilizing a magnetic strip for the transaction are increasingly vulnerable to fraud with no way to verify the originality of the issued card. Presently 47% of all card fraud occurs in the U.S. Defined at the highest level, a smart card is a plastic card that includes an embedded integrated circuit chip (ICC). Commonly used globally in place of magnetic stripe, EMV chip technology drastically reduces card fraud in face to face transactions as well as enabling safer and smart transactions across card and contactless channels.
The upcoming shift to EMV, according to SmartCardAlliance.org, will entail and increase from 600 million chip cards in 2015 to 900 million in 2016, as well as increased global interoperability.
“Statistics show approximately $9 to $10 billion worth of card fraud goes on every year which is a significant threat of liability,” said Miller. “This leaves any merchant susceptible and I would be surprised if any merchant operating long hasn’t had some type of card fraud transmitted through their system.”
On October 1 2015, the liability and responsibility of any fraudulent transactions and or chargebacks will lay with any merchant not EMV ready. Business owners are recommended to speak with their point of sale provider regarding solutions as well as their credit card processing relationship manager.
EMS added that direct processors like themselves will upgrade merchants’ systems free of charge.
Miller invites anyone with questions to contact him toll free at (866) 367-1818 or direct at (585) 285-9954, or visit www.EMS-NewYork.com.