Credit Card Liability-Upgrading Equipment
Effective October, 1, 2015, the EMV (short for Europay, MasterCard, Visa) microchips are to be used for card transactions within the US. Major credit card companies are urging merchants to prepare for and adopt microchipped cards now, ahead of the deadline. Once October 1 arrives, credit cards with magnetic strips on the back will be phased out. Swiping your credit card will become a thing of the past. Instead, all credit cards will be equipped with metallic squares on the front containing EMV microchips. The EMV chips are designed to protect users from fraud and counterfeiting. They turn cardholder data into a one-time, one-of-a-kind encrypted digital signature that proponents of the technology claim is incredibly difficult to copy or duplicate.
If a business fails to update its equipment, the liability for credit card hacking will fall on the entity using the lesser technology. If your organization has not already converted to devices that accept the EMV cards, you should contact your merchant bank for assistance as soon as possible. The cost of the new terminals can range from $150 to $500 each. Some vendors of this equipment are using the liability shift as a “sales tool” and are offering “free” equipment to businesses. This offer can have certain conditions. Look closely at the terms and conditions of the agreement.