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Education
EMV: The clock is ticking likely see some consumers
In the future, we'll
By Michael Gavin hesitate to purchase items
Cayan
from merchants without
t's hard to believe we're only two short months away from the liability
shift and the transition to the Europay, MasterCard and Visa (EMV) EMV card readers. Make
protocol. Although EMV has been talked about for the last few years, the sure your customers are
I majority of U.S. businesses are unprepared.
aware they could eventually
According to a recent study by Javelin Strategy & Research, only 25 percent of risk losing customers if
merchants have EMV-capable equipment and the majority of them are large
retailers. It's the small to midsize businesses (SMBs) that are uninformed about they are not processing on
EMV, the liability shift and the financial consequences they could face by being
noncompliant. EMV-capable equipment.
While it may be shocking to see these statistics, there are several reasons why
SMBs haven't upgraded yet. Some are unaware entirely and have never heard It's scary to think of all the unaware
of the acronym EMV. Some may view EMV equipment as too costly. Though it and uneducated merchants out there
may seem expensive and a headache to switch equipment, businesses will be – what can be done?
better off purchasing new equipment now rather than face the financial effects
of a fraudulent transaction. As a payment professional, it's up to
you to educate your customers on the
Some small businesses may be educated on EMV but may not see the true value importance of EMV and the critical
and benefit of making the upgrade. A few businesses may even think a fraudu- liability shift. For those in the pay-
lent transaction won't occur at their locations and are willing to take the risk. ments industry, EMV is a well-known
and common topic, but businesses
may not be aware. Your customers
rely on you and consider you their
trusted, go-to resource for anything
payments related.
Educating your customers
When you're speaking with your cur-
rent customers and prospects, give
them a brief overview of the transi-
tion to EMV, including the reason
why the United States is making the
shift and the benefits of having EMV-
capable equipment. Chip cards are a
sophisticated technology that mer-
chants need to be aware of, but the
key piece to focus on with your cus-
tomers is the liability shift.
Beginning Oct. 1, 2015, the liability
shift will go into effect, meaning if
a fraudulent transaction occurs, the
party responsible (the merchant or
the issuer) for an EMV transaction
not occurring will be financially li-
able. This will have a major impact on
all businesses, and having that liabili-
ty should convince your merchants to
upgrade their processing equipment.
46
EMV: The clock is ticking likely see some consumers
In the future, we'll
By Michael Gavin hesitate to purchase items
Cayan
from merchants without
t's hard to believe we're only two short months away from the liability
shift and the transition to the Europay, MasterCard and Visa (EMV) EMV card readers. Make
protocol. Although EMV has been talked about for the last few years, the sure your customers are
I majority of U.S. businesses are unprepared.
aware they could eventually
According to a recent study by Javelin Strategy & Research, only 25 percent of risk losing customers if
merchants have EMV-capable equipment and the majority of them are large
retailers. It's the small to midsize businesses (SMBs) that are uninformed about they are not processing on
EMV, the liability shift and the financial consequences they could face by being
noncompliant. EMV-capable equipment.
While it may be shocking to see these statistics, there are several reasons why
SMBs haven't upgraded yet. Some are unaware entirely and have never heard It's scary to think of all the unaware
of the acronym EMV. Some may view EMV equipment as too costly. Though it and uneducated merchants out there
may seem expensive and a headache to switch equipment, businesses will be – what can be done?
better off purchasing new equipment now rather than face the financial effects
of a fraudulent transaction. As a payment professional, it's up to
you to educate your customers on the
Some small businesses may be educated on EMV but may not see the true value importance of EMV and the critical
and benefit of making the upgrade. A few businesses may even think a fraudu- liability shift. For those in the pay-
lent transaction won't occur at their locations and are willing to take the risk. ments industry, EMV is a well-known
and common topic, but businesses
may not be aware. Your customers
rely on you and consider you their
trusted, go-to resource for anything
payments related.
Educating your customers
When you're speaking with your cur-
rent customers and prospects, give
them a brief overview of the transi-
tion to EMV, including the reason
why the United States is making the
shift and the benefits of having EMV-
capable equipment. Chip cards are a
sophisticated technology that mer-
chants need to be aware of, but the
key piece to focus on with your cus-
tomers is the liability shift.
Beginning Oct. 1, 2015, the liability
shift will go into effect, meaning if
a fraudulent transaction occurs, the
party responsible (the merchant or
the issuer) for an EMV transaction
not occurring will be financially li-
able. This will have a major impact on
all businesses, and having that liabili-
ty should convince your merchants to
upgrade their processing equipment.
46
