Laws have been passed that will forever change the way we do business in America. The unsettling fact is most business owners are totally out the loop, and will be taken by storm once these new regulations take full effect. Fortunately, you are reading this information, and your thirst for knowledge will position you to be steps ahead of your competition. The big change that is sure to remarkably affect all business owners is the introduction of EMV smart card technology. By the end of this article you will know exactly why the EMV smart card is so important, and exactly how to position your business for an influx of new supporters due to this astronomical change.
What is an EMV Smart Card?
All over Europe and across the world individuals have been suffering from identity theft, counterfeit, and other forms of petty crimes relating to forms of payment. Due to the overbearing presence of these crimes major merchant services companies in Europe came together and formed a much more reliable form of payment called the EMV smart card. EMV stands for Euro-Mastercard-Visa, and it has been used as a primary form of payment for the entire world for a few years now. According to EMVCo, approximately 1.2 billion EMV smart cards have been issued globally and 18.7 million POS devices accept EMV smart cards as of Q1 2011.
The largest reason for the gravitation away from traditional forms of payment and towards this technology is due to how effective the EMV smart card is at reducing identity theft. It contains a chip within that is close to impossible to duplicate, so all the countries that have incorporated this technology into their market places have seen a major reduction in fraud resulting slim visitekaartje from lost, stolen, and counterfeit cards. According to the UK Card Association, “Fraud on lost and stolen cards is now at its lowest level for two decades and counterfeit card fraud losses have also fallen and are at their lowest level since 1999. Losses at U.K. retailers have fallen by 67 per cent since 2004; lost and stolen card fraud fell by 58 per cent between 2004 and 2009; and mail non-receipt fraud has fallen by 91 per cent since 2004.”
The American government watched closely and marveled at the effectiveness of EMV smart card technology, and has now recently passed legislature that prompts the country to move towards this more secure form of payment. Effective April 2013, all business owners were mandated to transition to accepting EMV at their establishments, and by 2017 any business found non-compliant will be solely responsible for any and all fraud claims that result from their customers using outdated equipment.
What does this mean for your business? How does it affect you?
Well rather business owners like it or not they will be forced to submit to these new regulations, and have no choice but to transition to software and equipment that allows them to accept the EMV smart card. Now as business owners, we are known to have some form of higher intellect and forward thinking, so if this change is inevitable, how can we position ourselves to maximize off EMV smart card technology? Should we be the first to align ourselves with this movement or the last? When will it be more affordable to make this change, now while it is fairly new or later when everyone has been informed and demand is at an all time high?