If you are not already aware, change is afoot in the world of credit card processing technology and liability. EMV (Europay, MasterCard and Visa) cards, which contain a chip in addition to the magnetic stripe, are coming to a store near you – and your store. Designed to reduce fraud, EMV cards, also referred to as chip cards, are more difficult and expensive to counterfeit than magnetic strip cards and create a unique transaction code every time they are used that can only be used once.
Already the standard in Europe and Canada for several years, EMV cards are not as common in the United States yet. That is expected to change come October 15, 2015, however, when fraud liability shifts from U.S. card issuers to merchants who have not upgraded their point-of-sale terminals to process EMV cards.
To process an EMV card transaction, the card must be inserted into a payment terminal and left in place until the transaction is finished, rather than swiping a magnetic stripe. In some cases, customers using an EMV card may also be required to enter a personal identification number at the time of processing.
So does this mean you need to buy a new terminal now to ensure you are able to accept credit card payments? Not immediately. It will probably take some time for EMV credit cards to be in widespread use, and the cards will still have magnetic strips as a backup that will work with older terminals.
If you want to avert assuming the risk of fraud liability, however, investing in new equipment is a good way to protect your business’ bottom line. Moreover, innovative, new point-of-sale systems are being developed that are designed specifically for small businesses to handle EMV payments and much more, giving you another reason to start planning ahead.
Clover Mobile, for example, is full-featured, portable, tablet-sized payment system that supports EMV (chip and PIN and chip and signature) and magnetic swipe credit card payments, as well as PIN debit and contactless payments (such as Apple Pay). The Android-based device features a 7-inch screen, barcode scanner, front-facing camera, wireless or wireless plus 3G connectivity and a long-lasting battery. Designed with small businesses in mind, Clover Mobile can be used to complement the Clover Station point-of-sale system or as a standalone solution, and merchants have the ability to add applications to customize the system. Restaurants can use it to allow customers to pay at the table and retailers can use it to process payments anywhere in the store, scan inventory or accept payments at off-site events. Contact the company to confirm pricing and availability.
Another innovative point-of-sale solution for small businesses entering the marketplace is Poynt Smart Terminal, a portable device with wireless 4G connectivity that features a merchant-facing Android-based tablet on one side and a private, customer-facing screen on the other. Poynt Smart Terminal, which accepts magnetic stripe, EMV, NFC (near-field communication), Bluetooth and QR (quick response) code payment technologies, includes a built-in payment terminal, register, software, barcode scanner and receipt printer and can be used alone or with existing cash registers. Merchants can also use third-party applications to customize the functionality. The product can be pre-ordered now at $299 and is expected ship in early 2015.
The popular mobile payment system Square Reader, which allows merchants to take credit card payments anywhere using their iPhone, iPad or Android mobile phone and a free point-of-sale app, will also come in an EMV version. Square Reader for Chip Cards can be pre-ordered at $29, with delivery scheduled for spring 2015.
With the fraud liability shift less than a year away, it is a good time to start planning ahead. Protect your bottom line by considering an upgrade to an innovative new point-of-sale system that can handle EMV credit card processing and take your business to the next level.