Square Helps Merchants and Small Businesses Get EMV Credit Card Compliant
The Federal Reserve sites credit card fraud as one of the biggest concern of consumers, even though fit impacts less than 1% of all credit card purchases. However, according to Cardhub.com, the US accounts for almost 50% the world's credit card fraud, despite the fact that only 24% of the transactions happens here. So how is the US counteracting this? The US banks will be doing away with the black magnetic strips and introducing EMV credit cards (the current global standard). US cards are currently viewed around the world as inferior, and will finally catch up to what has become the standard around the world. In fact, in most parts of Western Europe they don't accept the magnetic stripe cards the US uses. By October 2015 the US will be the last of the major market to use magnetic stripe cards. The inside of your cards will now include what's called EMV (Europay MasterCard and Visa) technology - a small microchip that will make it really difficult to counterfeit.
What does this mean for your small business?
For starters, if you or your business accepts cards, you'll need a new card reader or processing device to read these chip cards. Secondly the expect the new EMV readers are pricey and will require contracts. And even though the new card readers will be able to process both EMV and stripe cards, here's the catch! Merchants and businesses that does not make the switch by October 2015 will be on the hook for fraudulent chip card transactions... Let me explain, come October 2015, if you process a transaction with a counterfeit chip card without a EMV card reader, you or your business and not the bank will be on the hook for the charge.
How to get EMV compliant without the high cost?
For small business owners who are on edge, no need to worry as this is where Square comes in. And as usual, Square is again braking the mold of credit card processing. Square announced on Wednesday July 30th, that they will again be removing the barriers-to-entry by releasing affordable (price have not been announced), easy to use EMV-compliant card readers for their Square Stand customers (typically small businesses and entrepreneurs).
Click here to be notified when the Square EMV Readers are available for pre-order.
What are your thoughts on the new EMV switch? Share it in the comment section below.