October 1st marked a shift in liability for data breaches occurring at point-of-sale terminals, but what does that mean for your business? Karen Stern, Partner in Charge of BSW Small Business Services, discusses how the new chip and pin cards will affect you, in this month’s “Financial Fitness,” as featured in Small Business Monthly.
Thanks to advancements in technology, it has become increasingly simple and profitable for businesses of all sizes to accept and process credit cards. However, as data security breaches remain a constant fear for many merchants, it’s important that you remain compliant with the various policies put in place for increased security.
One way credit card companies are fighting back against fraud is by upgrading their technology. Smart cards (or chip-and-pin cards, chip-and-signature cards or EMV, which stands for developers Europay, MasterCard and Visa) have embedded microchips that store data rather than the magnetic strips on current credit cards.
Since merchant banks are taking the necessary steps to prevent fraud on their end, the liability is now shifting from them to you. This means that if you don’t adopt EMV processing technology in the near future, you could be held responsible for fraudulent charges. American Express, Discover, MasterCard and Visa are implementing a liability shift for point-of-sale terminals as early as October 2015.
By updating your point-of-sale (POS) system to accept EMV payments, you are taking the necessary steps to ensure your business will support the latest payment innovations and reduce risk.
For you to remain secure and compliant, updated POS devices should be properly integrated into your system. A PCI compliance audit or review will help ensure the EMV technology has been implemented securely. If you have any questions about these compliance requirements, contact your adviser.