Chips and dip? These terms are no longer limited to the appetizers at your favorite Tex-Mex spot – they are now terms you need to know when the conversation shifts to payment technologies.
If you are a merchant, you have, no doubt, heard about the upgrades made to the way your business processes credit and debit card payments. Card technology has evolved to include a chip – a microprocessor that generates a one-time code for every transaction processed through an EMV reader. What you may not have heard is why your business should accept this technology, and the benefits it offers.
Here are the top three reasons you should be using EMV technology:
- Curb Fraud
Criminals are everywhere. The data stored on a magnetic striped card is static and never changes, making it easy for scammers to create duplicate cards and use them at businesses who only swipe cards to process payment. However, the algorithm that EMV chip cards transmits is unique to each transaction, making it virtually impossible for criminals to intercept the data to create counterfeit cards.
- Maintain Your Customers’ Trust
Like business owners, consumers are also aware of the upgrades made to their credit and debit cards. Utilizing these tools can help to boost your reputation with customers by showing them you are taking steps to protect their data. By implementing an EMV capable POS system, you are showing your customers that you are concerned about ensuring the security of their information while shopping in your store.
- Limit Your Financial Liability
In October 2015, the liability shifted from issuers to merchants for fraudulent transactions if their payment terminals were not chip-enabled. Businesses that only swipe cards using the magnetic strip would be held responsible for any transactions made using a lost or stolen card.