The United States is following the rest of the world’s lead in making the switch from credit cards with magnetic stripes that store information to cards with EMV chips. The chips generate a unique code for each transaction, which makes it harder for criminals to make phony cards and use them for fraudulent purchases.
EMV chips are intended to offer better protection to consumers by reducing the chances of their credit card information being stolen. Making the switch can also benefit businesses.
The deadline for businesses to begin accepting EMV chip cards was October 1, 2015. After that date, there was a liability shift. That means that if a business does not accept chip cards and a fraudulent purchase is made that could have been prevented had the business accepted chip cards, the business will be liable for the cost of the fraudulent transaction. This liability shift could potentially be very costly for businesses that do not accept EMV cards. By investing in the technology to accept chip cards, you can protect your business from these losses.
EMV chip cards are the future of payment technology. As American consumers come to better understand the enhanced protection they offer, they will prefer them to magnetic stripe cards and will expect businesses to accept them. If your business does not accept chip cards, consumers may consider your company old-fashioned and may think that you do not take security seriously.
By embracing chip technology, you can show that your business is modern and up to date on the latest technology and trends. Accepting chip cards demonstrates your commitment to protecting your customers. This can enhance your company’s reputation and help you build and maintain a base of loyal customers.
Eventually, credit cards issues in the United States will no longer have both EMV chips and magnetic stripes; they will have only chips. Companies will have to get on board sooner or later. By investing in the technology needed to accept EMV chip cards now, you can be ready when the full switch to chip cards happens in the future.
EMV chip cards are the future of credit card processing in the United States. Accepting the new cards can protect your business from fraud liability and demonstrate to your customers that you are using the latest technology because you are committed to their protection, which can help your company’s reputation.