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EMV - A Necessary Evil

EMV – A Necessary Evil

Reasons for slow EMV adoption can range from certification issues to concerns with the customer experience. While banks, processors, and vendors work quickly to tackle the certification queue, merchants are advised to wait patiently for their payment systems to be certified – a waiting game that can easily stretch into months. As for the customer experience, customers waiting in lengthy lines can easily become frustrated, and chip cards provide a slower experience that both sides of the counter would prefer to skip.

A CreditCards.com poll highlighted the gap between consumer and retailer adoption of EMV, and found that while 70% of consumers are carrying EMV cards, only 22-37% of merchants are equipped to use the technology at checkout. While some of the delay is out of merchant control (e.g., certification delays), merchants who choose not to make the upgrade should be aware of the risks associated with non-compliance.

EMV chip technology helps protect sensitive payment card data by creating a unique code for every transaction. While EMV technology cannot prevent a data breach from occurring, it does make it much more difficult for criminals to profit from the information they’ve stolen. This should reduce fraud rates in the U.S. and the amount of counterfeit cards in the marketplace. In fact, Mastercard and Visa report that counterfeit fraud rates have already decreased in the U.S. as a result of EMV adoption.

EMV not only adds an extra layer of payment security, but also helps protect merchants from chargebacks. Before the liability shift, merchants had a reasonable chance of recovering funds or fraudulently-purchased property. Now, merchants not accepting EMV payments absorb the cost of fraudulent charges – including the loss of goods or services. For some merchants, hundreds of dollars a month in chargebacks can critically affect their bottom line.

The longer merchants wait to start the EMV certification process, the higher their risk of fraud and financial loss. Merchants can prevent unrecoverable losses, protect their brand, and protect their customers’ sensitive data with the implementation of EMV. And with a semi-integrated payment solution, EMV compliance is easy to achieve.

It’s time to get started. Find an EMV solution to fit your business today.

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