As we discussed earlier in the month, small business have been slow to adopt EMV, but a new article from Business 2 Community (B2C) shows why they can't lag behind.
EMV, or chip and PIN cards, have been used abroad for a long time, but have only recently come stateside. As fraud in EMV supported countries dropped, the lack of the technology in the U.S. caused fraud to surge stateside. According to B2C, there was $8.6 billion in credit card theft in the U.S. last year, just shy of half the amount of global fraud despite the fact that American transactions only accounted for 24 percent of all credit card sales.
If EMV is not widely adapted by the end of 2015, that number could rise to $10 billion.
The biggest potential impact to SMBs is the liability shift that the adoption of these new cards is bringing. There's an Oct 1 deadline for card issuers to replace existing cards with new, EMV ones. Once the deadline passes, fraud liability will shift from the issuers to merchants if they haven't switched their systems over to accept the new technology.
In a survey of 500 small business owners by Intuit, 86 percent said that they may not be able the financial and legal liabilities if their systems are hacked.
The technology does come with an investment, but it pails in comparison to the potential liability of a fraudulent transaction. In many cases, SMBs who have updated their hardware recently may already have the ability to accept the new cards and would just need a new software solution to make it all work.
If your company is in need of a new credit card payment processor, be sure to shop with 911 Software today!