What Does The Mandatory Switch To EMV Mean To The SMB?

On October 1, 2015 new requirements for retailers will cause a significant shift in liability for certain types of credit card fraud. However, many small business owners are not ready for this mandatory change in payment processing and are unconcerned about the upcoming October deadline to make the move to the Europay, MasterCard and Visa (EMV) system, despite the fact that not doing so could open the door to a stiff new liability potential.

According to a recent article in Payment Week: “A new report from Randstad Technologies suggests that the urgency that might have been thought to be universal was anything but. The Randstad Technologies report noted that 42 percent of respondents surveyed across a wide range of industries said that there was either no progress made toward EMV in the United States, or that the respondents were unaware of any progress made. Indeed, 58 percent of firms regarded the liability shift deadline as having little to no impact on the overall bottom line.”[i]

Many noted that a lack of available time and access to the necessary technology to change to EMV were the biggest factors for why such changes haven’t yet come to pass.[ii]

EMV is an industry acronym that stands for Europay, MasterCard and Visa. It’s basically an added microprocessor chip in a credit card that makes it easier to identify the user. Those who do adopt the EMV cards should expect the same level of fraud protection have now. The new requirements make businesses without EMV capabilities liable for losses related to credit card fraud at their location.

What it MeansTo OmniChannel Merchants

Because the move to EMV should cut down on fraud associated with in-person sales at POS, some experts expect fraudsters to attempt to shift to online transactions, which means that omnichannel merchants should be doubly concerned with security. GoECart can help with that.

Omnichannel merchants must have special EMV readers set up at all brick and mortar POS to ensure compliance by October 1, 2015. Payment processing hardware and software may also need to be upgraded. Online sales will not be affected by these new requirements.


[i] Large Numbers of Firms Not Concerned About EMV Liability Shift Date. http://paymentweek.com/2015-7-27-large-numbers-of-firms-not-concerned-about-emv-liability-shift-date-7817/

[ii] Ibid.

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