With the upcoming liability shift coming this October, many retailers are actually just beginning to prepare and educate their companies on EMV.
iQmetrix continues to work through our EMV certifications to meet the October deadline.
Below are the Top 5 Myths About EMV:
Myth #5: The benefit for the consumer is low.
With recent headlines surrounding fraud, identify theft and card-related security breaches, you can just about guarantee that consumer fear and anxiety are also on the rise. Many of us have experienced or know someone that has been victim of some sort of fraudulent activity.
The good news is that consumer knowledge and awareness of fraud are also on the rise. Many retailers are adopting EMV standards, including new credit card terminals that support the new chip-and-pin technology, which helps to allay customers' fears about fraud.
Myth #4: The cost for me to upgrade to EMV is too high.
While you aren’t legally mandated to adhere to EMV standards, the question has been asked: Can you really afford not to? In addition to providing a secure experience to the consumer, the potential cost of fraud liability may vastly exceed the savings from not upgrading to EMV.
In addition, those retailers looking to move to a mobile strategy within the next year or two are concerned about spending money on a desktop device (Verifone MX 915 for iQmetrix retailers) and then turn around and have to buy mobile devices in 6-12 months.
Since most businesses are still trying to iron out the details of their mobile strategy, they haven’t formally announced which device will be supported for EMV, putting many in a difficult spot. But did you know there is value in used MX 915 devices? Retailers will be able to recoup some of the initial cost through reseller programs.
Myth #3: I have plenty of time to prepare for EMV.
Chip-and-pin credit cards are just starting to become more popular in the U.S., as many card issuers begin to mail them out. However, since the number of chip cards being used in the retail setting is still limited, merchants are still somewhat reluctant to put new technology in place until they see the demand for it.
Consider the time required to make the switch within your organization. In addition to the 12-week lead time for current Verifone MX 915 devices, you need to consider the time it will take to deploy the hardware into the field and complete sales staff training. With growing market demand, and many retailers waiting until the last minute, EMV equipment providers will struggle to keep up with the demand.
Myth #2: I don’t have problems with fraud today.
This is a huge misconception and one we are hearing a lot of from our smaller merchants.
In a recent blog post, Verifone's Drago Dzerve explores this scenario:
"...if you are a big box retailer and you support EMV by Oct. 2015, any card that has been duplicated and then is attempted to be used at your location will be directed to be used in an EMV presentment fashion – either inserted or tapped. Since these cards won’t work in an EMV fashion, the result will be that the person attempting the fraud will ultimately have to pay via a legitimate means or leave the merchandise there and find another merchant.
"Where do they go? The guy down the street that doesn’t have EMV capable terminals. That guy’s fraud rate first doubles, then triples, and finally he is treading water to just stay in business as every crook with a card skimmer is sitting in his parking lot. Will he support EMV now? Absolutely. My prediction here is that it will be 180 days between the big box enabling EMV and the small guy realizing he is getting absolutely destroyed by fraud and thus also has to adopt the technology."
Myth #1: EMV is the answer to credit card fraud.
We don’t want to leave you with the impression that EMV certification signals the end of all fraud. The best security plan against fraud is a multi-layered approach. Adopting EMV standards, along with other security and fraud practices, like integrating your credit card payments with RQ and adding encryption technology, is the best bet in taking a stand against credit card fraud.
In conclusion, the best strategy is to educate yourself now so that whatever your plan around EMV is, you know exactly what the risks are and have time to deploy and educate your staff on the policies and procedures you’ve chosen to implement.
Even if you decide to hold off on EMV for the time being, if your current credit card processing is not integrated with RQ, it might be the time to consider an integrated solution, which is a step toward more secure credit card processing standards for your business. Select a partner today.
Contact your Account Manager for more information about RQ-integrated payment processing.