Are You Prepared to Upgrade Your POS System to EMV Chip Card Technology?
You may have noticed more customers paying with cards containing a small, yet powerful chip. These chip cards are part of an industry standard coming to the U.S., and can help protect customer and transaction data when used with a chip-enabled point-of-sale (POS) system.
All major payment networks in the U.S. are adopting chip card (also known as EMV) technology, and beginning October 2015, instituting what’s known as a “fraud liability shift” in the U.S. This means that the party with the least secure technology, whether business or card issuer, may be liable for certain types of fraudulent transactions if they don’t adopt chip card technology.
Why should you upgrade your POS system?
- Help reduce counterfeit, lost, or stolen credit card fraud.
- Increase customer confidence.
- Reduce operational costs as a result of fraud.
- Align your business with the global standard to fight payment card fraud.
To prepare for the October fraud liability shift, work with your processor or terminal provider today to upgrade to a chip-enabled POS system.
Your processor or terminal provider can assist you with this upgrade. Below are some conversation starters you might reference when talking to your processor or terminal provider about the upgrade process. Please note: each consideration may not be necessary for your business.
How do I know if my POS system can accept chip cards?
Chip-enabled POS systems have a slot, typically located at the bottom of the terminal, into which the chip card is inserted.
What POS system hardware do you offer? Do you offer POS systems that have contactless payment capabilities in addition to being chip enabled?
Given the rise of contactless “tap & pay” payments (i.e. mobile wallet on smart phone), you may want to consider the upgrade to contactless technology.
When will the software in my POS system be ready to accept chip card transactions? Will it be in time for the new fraud liability shift policy taking effect in October 2015?
Your POS system needs both the hardware and software to accept chip cards, and the software is sometimes not loaded into the POS system right away. You should ask if your POS system already has this software, and if not, what you need to do to make sure it is updated when the software becomes available.
Are there other data security and fraud prevention tools you offer, like tokenization and encryption, which I should take advantage of?
This is a good opportunity to talk to your processor or terminal provider about security options other than chip card technology.
Are there any special actions to take when I switch out my current POS system, especially if data is stored on it?
It’s always good to make sure that data is correctly deleted or removed.
The shift to chip card technology is an important one for businesses and card issuers alike. Help protect your business from counterfeit fraud by staying informed about what the fraud liability shift will mean for you, and talk to your processor or terminal provider about the necessary steps you need to take to upgrade.