EMV smart card: are you ready for the change?
Laws have been passed that will forever change the way we do business in America. The disturbing fact is that most business owners are totally out of the loop and will be taken by storm once these new regulations go into effect. Fortunately, you are reading this information and your thirst for knowledge will position you to be one step ahead of your competition. The big change that is sure to dramatically 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 followers due to this astronomical change.
What is an EMV smart card?
Across Europe and around the world, people have suffered from identity theft, counterfeiting and other forms of petty crime related to payment methods. Due to the pervasive presence of these crimes, the main commercial 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 the primary form of payment around the world for a few years. According to EMVCo, approximately 1.2 billion EMV smart cards have been issued worldwide and 18.7 million POS devices accept EMV smart cards as of the first quarter of 2011.
The main reason for moving away from traditional forms of payment and towards this technology is due to the effectiveness of the EMV smart card in reducing identity theft. It contains a chip inside that is almost impossible to duplicate, so all countries that have incorporated this technology into their markets have seen a significant reduction in fraud resulting from lost, stolen and counterfeit cards. According to the UK Card Association, “Lost and stolen card fraud is now at its lowest level for two decades and losses from counterfeit card fraud have also decreased and are at their lowest level since 1999. Losses at UK retailers have dropped by 67% since 2004; lost and stolen card fraud dropped by 58% between 2004 and 2009; and missed mail fraud has dropped by 91% since 2004 “.
The US government closely watched and marveled at the effectiveness of EMV smart card technology, and recently passed a legislature pushing the country to move toward this more secure form of payment. As of April 2013, all business owners have been instructed to transition to accepting EMV at their locations, and by 2017, any non-compliant business will be solely liable for any and all claims. fraud resulting from your customers using outdated equipment.
What does this mean for your business? How does it affect you?
Well, business owners like it or not, they will be forced to submit to these new regulations and will have no choice but to transition to the software and equipment that allows them to accept the EMV smart card. Now as business owners we are known to have some kind of superior intellect and vision for the future, so if this change is inevitable, how can we position ourselves to maximize EMV smart card technology? Should we be the first to line up with this movement or the last? When will it be more affordable to make this change, now that it’s fairly new or later, when everyone has been informed and demand is at an all-time high?
Exactly! Acting now to ensure you are at the forefront of this move to EMV smart card technology will ensure you stay one step ahead of your competition. It will also be much more affordable to make this change now, while most business owners have no idea about this information. Large retailers like Walmart, McDonald’s and others were the first to incorporate EMV smart card technology into their stores because they understand how demand drives inflation. The longer it takes to transition, the more you pay.
Where should you go from here?
Aligning with this new technology won’t be as difficult as you think because every legitimate processing company has predicted this impending change for years. Initially this transition process may seem costly and unnecessary, however a small investment will now position you to take advantage of the biggest change ever to occur in the field of business services. EMV smart card technology is sure to become the preferred payment option for many consumers. Positioning yourself to meet market demand will lead to new customers, higher revenue, and a stronger bottom line.