As a business owner, you are constantly faced with difficult decisions that could impact your company’s performance positively or negatively. October 1 marks exactly a year since the EMV liability shift occurred in the United States, so the idea of adopting this technology has probably crossed your mind once or twice. Although becoming EMV-compliant is not a requirement, it could hurt your business if you don’t make the switch.
If you aren’t sure whether it’s time to become EMV-compliant, you should consider these factors.
You know it’s time to become EMV-compliant if:
1. You’ve Experienced a Data Breach
If your business has already had some type of data breach, you should switch to EMV technology. Taking a proactive approach protects your customers’ data, your company’s reputation, and your bank account (since you are now liable for any losses related to such a breach if you’re not EMV compliant when it occurs).
2. You Want to Avoid Confusion
Some major retailers switched to EMV before the liability shift occurred, while others announced their plans to do so shortly after the Oct. 1 deadline. Since then, many more businesses—whether small firms or large organizations—have jumped on the EMV bandwagon. Consumers are ready to use their new chip-and-signature cards, so they may get confused switching back and forth between companies that are EMV-compliant and companies that are not.
3. Your Customers Primarily Use Their Credit Cards
If the majority of your consumers use their credit card to make purchases, then your business would benefit from switching. EMV prevents credit card fraud from taking place. The more customers who reach for their credit cards at the checkout line, the more data a business needs to protect. Why put their personal information at risk if there’s a better way and why would you take on added liability by not switching?
4. Your Competitors Have Adopted the Technology
Keeping up with the competition is a key part of owning a successful business. If your competitors have adopted EMV technology, then you too should make the switch.
5. Your Merchant Service Provider Offers EMV Terminals
When you choose to adopt EMV technology, you’ll have to replace all your credit-card processing solutions with new EMV terminals. This may pose a challenge if your current merchant service provider doesn’t offer EMV-compliant equipment. If your provider doesn’t offer them, you may want to switch merchant accounts.
6. You Want to Protect Your Business
After the EMV liability shift occurred, businesses became responsible for any card-present fraudulent transactions that took place. Adopting EMV technology protects not only your customers’ data, but also your business from having to pay additional chargebacks or even face legal troubles if any cases of fraudulent activities arise.
Learn more about what EMV liability shift means for business owners.