As a small business owner, you’ll no doubt encounter a whole host of different challenges along your journey. However, one that often goes under the radar but can actually incur the most costs is your point-of-sale system. Why? Because if your POS terminal is unable to accept EMV cards (chip cards), then you may fall victim to fraudulent claims or contested transactions.
EMV is actually an acronym for the global chip standard forged by the dominant players known as Europay, Mastercard and Visa. Back in October 2015, there was an initial surge in the industry to transition to chip technology and this was combined with the emergence of merchant liability. There is going to be a second push this year, and this will only strengthen the pressure on merchants to accept EMV cards.
In fact, October 2017 is the precise deadline for merchants to accommodate EMV cards, and financial responsibility will be fully placed on businesses within all industries. However, small business owners will only be completely liable if a chip card is processed as a mag card, otherwise the responsibility will be on the card issuer.
Now, it is understandable for small business owners to consider their budget and refrain from upgrading a system that seems to work adequately. But, as well as the risks of incurring costs through insufficient technology, you could also be targeted by malicious hackers. Having an outdated system generally means a lesser level of encryption and therefore more likely to be compromised.
All in all, it is wise to protect the longevity of your business by keeping your technology and POS system up to date. This will enable merchants to avoid financial penalties and potential security breaches.
Contact Us: Call us today if you are experiencing difficulty in getting approved for high risk merchant account, we can help.
High Risk Merchant Account LLC
915 Folly Road, Suite 49
Charleston, SC 29412