More great information from our local bank. Hope you are also receiving the current information about Chip Card Technology from your bank and credit card processor. The chip card technology is also known as EMV chip technology.
Here is what was sent to us:
“An important component of the scheduled switch to chip technology is a shift in fraud liability. Effective October 1st, 2015, merchants who have not made the investment in chip-enabled technology will be held financially liable for card-present fraud processed on non-chip enabled terminals. This means that your business will be responsible for paying fraudulent charges on card-present transactions. In the event of a compromise at your location you are still responsible for:
- Rebuilding the customer’s credit
- Paying any fines and/or fees, if applicable, from your card issuers
- Rebuilding your business reputation due to a compromise”
Bearing the losses from credit card fraud is a big risk for any business. Our letter from our bank urged businesses to contact their Merchant Service Provider to discuss if your payment terminal and supporting software is ready to support chip cards.
Tom Weiskotten has been in the credit card processing business for 18+ years and he specializes in the lodging business but will assist any type of business. His take on the upcoming changes are that the October 1st deadline is basically a transfer of responsibility. Meaning that the party that is least secure will be held responsible for the fraud. He also told me that new technology in the credit card processors is rapidly changing and processors may need to be changed out every 3-5 years. Because of this he warns that the ‘cheap’ terminals you may see offered online may be outdated.
Be aware and informed. Always a good idea.
Thanks for Listening,