EMV? It stands for â€œEuropean MasterCard/Visaâ€. This is one of those â€œgood/badâ€ things. We might as well see it as good because come October 15, 2015, we donâ€™t have any choice but use it. Itâ€™s bad because it means a change in the way we handle credit cards and that means it is going to cost us more money. Can you imagine?
With the huge rate of credit card fraud in our country (the highest percentage in the world by far), banks are moving to take us to the same type of credit card system that has been used in Europe for years. It is built around a embedded chip in each credit card that communicates with the credit card reader to insure the card is valid.
It means everyone is going to be getting new credit cards. It also means we have to get new credit card processing equipment. Itâ€™s hard to tell what that is really going to cost us as retailers but you can bet the days of free equipment are g-o-n-e.
Card processors are working now to develop the new equipment which uses what is known as â€œdip and stickâ€ technology. Unlike the way we swipe a card now, the new system requires the card to be inserted and kept in the machine throughout the entire transaction.
No real word yet about how we will handle phone orders or Internet orders but here is one bit of news we all need to remember: When the new system is in use October 15, 2015, fraudulent purchases that are made on your equipment will be your responsibility! The banks currently absorb those fraudulent purchases but that is going to change. If you accept a card that doesnâ€™t have the chip or you fail to use one of the new readers and you get a fraudulent purchase, YOU have to absorb it!
So, something to look forward to. There will be more in print as time passes and banks and their credit card allies decide just how all this is going to work. For now, keep an eye open for even more people pestering you about changing credit card processors than do that now. Iâ€™ll bet those people who sell high ticket card processors are drooling at the mouth in anticipation!