Credit Card Processing Trends: How to Best Adopt Innovation and Evolution
In looking back over the past 10 years, the degree of technological changes and the vast number of new competitors is astounding. A prime example is the way in which debit and credit card transactions occur. Until recently, consumer transactions were completed using a traditional magnetic strip debit or credit card. However, due to Euro Pay, MasterCard, and Visa (EMV®), things have changed.
Unlike conventional cards, EMV® cards are designed with an integrated chip that requires a one-time, high-security PIN to be entered opposed to signing. By acknowledging and accepting new technologies and competitors, you have a huge advantage.
EMV® Credit Card Processing
Accepting EMV® payments is not only important but also mandated. If you expect to stay in business, you must upgrade to a new EMV® terminal. This is not merely an upsell type of situation but is instead more of a do or die type. If the required update is not completed by October 1 of this year, your business will be at serious risk.
Instead of swiping and signing, consumers using EMV® cards are required to enter a special PIN distinct to each transaction. Ultimately, this reduces the chance of any credit or debit card information being captured or a stolen card from being used.
If you choose not to accept this change by October 1, you automatically become liable for any financial damage caused by a fraudulent act. For example, if someone were to purchase $5,000 in merchandise using a magnetic strip card after the compliance date but those charges are identified as being fraudulent, you will have to pay instead of the card issuer.
Shift in Liability
Within the United States, the liability shift for EMV® chip cards actually started in 2013. Initially, this applied to international chip cards used for purchases in the US. However, by October 1, MasterCard, Visa, Discover, and American Express put all responsibility for fraudulent damage back on the POS terminal.
By October 1, 2016, MasterCard is shifting liability for ATMs and then one year later, Visa and American Express will follow suit. By October 1, 2017, all four credit card processing companies will shift liability for pay-at-pump gas stations.
Chosen Payments can make it easier for you to acknowledge and accept new technologies and competitors. This company offers a long list of products and services designed to benefit your company, not only credit card processing. For example, for dependable and secure credit card processing of payments, Chosen Payments has the perfect solution regardless of an industry. With a new CPSP compliance program, the risk of experiencing a breach is virtually nil. Rather than fear change, you can embrace it thanks to the support offered by Chosen Payments.