If you process credit cards in your winery or tasting room, you’re probably starting to hear about new payment technology and the upcoming EMV Liability shift. Also called “ChipandSignature,” EMV is quickly becoming the global standard for secure credit card payments as these cards contain an embedded chip that protects cardholder information from becoming vulnerable to fraud. As
credit card companies push US merchants to adopt EMV technology, you can expect to see a few changes that affect your business. The good news is there’s no need to panic as long as you know the facts so you can make the best decision for your business.
What is EMV?
EMV is a chip technology used globally in place of magnetic stripe. EMV chip technology helps reduce card fraud in a facetoface, cardpresent environment by creating a unique transaction code each time it is used. It enables safer and smarter transactions across contact and contactless channels. EMV was conceived by EuroPay, MasterCard and Visa (EMV). This group includes representatives from all major world brands (American Express, Discover, JCB, UnionPay) and comprises the governing body referred to as EMVCo.
Why the Rush?
EMV has been the credit card processing standard across most of Europe for years. EMV is a much more secure method of payment processing, so thieves began to target magnetic stripe cards in the US, which hasn’t switched to EMV. You’ve likely read about a series of highprofile card data breaches in the news, which prompted the card companies to move forward with EMV. How is your business affected?
By the end of 201 5, 70% of credit cards in the US are expected to have unique identifier chips. In October of 201 5, the liability for counterfeit card transactions will move from credit card issuers to merchants (that’s you!) if an EMV card is presented for payment at the merchant and it is swiped or entered manually and the transaction is fraudulent. In this scenario the merchant would be liable for the fraud, not the issuer. The merchant could potentially be presented with fines from the credit card companies. Simply put, your winery becomes responsible for fraudulent EMV transactions that occur in your business…NOT the credit card companies.
Note: This liability shift is a NOT a US law, but a credit card network mandate and affects card present transactions only. eCommerce, online or phone orders are not included at this time.
In addition to the security benefits of EMV, most EMV devices support NFC transactions like Apple Pay and Google Wallets. This provides your customers with another, more secure payment option.
Is EMV Right for Your Business?
It’s important to remember that the liability shift is not a law and although it is recommended, you are not required to switch to EMV. While the official deadline for the liability shift is October 1 st, there is no need to panic as long as you weigh your options and put a plan in place.
When considering whether EMV is right for your business, you should take the total cost of implementing EMV devices into consideration. Depending on your vendor, most devices range from $200$500 or a low monthly rental fee. Then, you’ll want to consider your current fraud chargeback liability to determine if moving to EMV makes sense in light of the potential impact to your
Credit Card Security and PCI Compliance
Securing your customer credit data is one of the most important steps you need to take to protect your business. In addition to tasting room pos security, you should also review the security of your ecommerce or club software. Taking advantage of today’s modern processing technology, often referred to as tokenization, enables you to keep customer card data stored in a secure “payment vault” with your processor instead of within your system. If your credit card data is not currently tokenized, you could be at risk of a credit card breach. The safest option is to look for a technology partner that meets the latest standards in PCI Compliance and offers tokenization.