With new embedded chip cards on the horizon, there are a lot of myths going around about the new format. Here are three of them, and why they may or may not be true:
The new cards will work by October 2015.
Last year, President Obama signed an executive order mandated issuers to replace all current cards with new EMV cards, but it says nothing about merchants accepting them.
The one thing that incentives merchants to upgrade is the fact that, after the deadline, data theft liability will shift from the issuer to the seller if they haven't upgraded their systems. Though they'd be smart to upgrade, one MasterCard executive told NerdWallet that almost half of all domestic merchants will not be able to accept the new cards by the end of the year.
Small volume merchants don't need to upgrade.
While there's nothing that says anyone had to upgrade their systems to accept EMV, the aforementioned liability increase is a pretty compelling reason.
Business News Daily reports that as more and more major retailers equip the new technology, criminals will shift their focus to smaller ones who have lagged behind. An industry executive told the news outlet that, in the U.K. fraud patterns for face-to-face transactions didn't go away until full compliance was achieved. While there was an overall decrease, most of the activity shifted to where EMV systems had yet to be implemented.
Upgrading is expensive.
This one has a little more gray area then the last two. According to Business News Daily, it will likely be expensive for retailers with equipment more than a decade old, but with equipment that obsolete any upgrade would probably be so.
The outlet reports that there are some companies that are trying to mitigate the costs, offering discounts and trade in incentives to try and increase EMV adoption. Another thing to consider is that most new hardware also comes with NFC, the technology behind mobile payment systems like Apple Pay, allowing merchants greater flexibility when handling customer payments.
Many businesses will only need a software upgrade in order to accept EMV. If you are in need of new payment processor software for your business, be sure to contact us today. Take a look at the rest of our website to learn more about the high-quality products that we carry.