Do you accept credit cards as payment for the goods and services that you provide to your customers? These days, most small businesses answer “yes” to that question. For those who currently swipe the magnetic stripe on credit cards, including most restaurant and retail establishments, there are major changes coming soon that may have serious implications for your business.
The major credit/debit card issuers have begun to distribute new cards that contain an embedded chip on the front which should make fraudulent card use more difficult. The fraud reduction benefits of the new cards will not be realized if merchants do not have the technology to accept the new cards. It is important for all merchants who accept these cards to upgrade to the new technology because on October 1, 2015 there will be a shift in the fraud liability. This means that after that date, merchants who swipe chip cards will be liable, rather than the bank, for any fraudulent transactions.
What should you do?
1. First, if you have not already been contacted by your merchant services provider, payment processor, or financial institution, you should contact them. The solution for each merchant will depend on how they have set up their payment processing, how it interfaces with their POS (Point of Sale) system, etc. At the very least, you will need to acquire new devices that will be able to process the new cards in place of the swipe machines currently in use. There are varying charges and steps necessary, depending on the system that you use. Again, your best source of information should be your current processor.
2. If you find that the new technology changes will not work with your current POS system, and you want to continue with that system, you may need a change in processing companies. This is why all merchants who swipe cards should be taking action now – October will be here sooner than you think.
3. There is a great deal of information in the press and on the Internet about these changes. One of the most complete and unbiased resources is www.emv-connection.com/merchants. This site has listings of videos, Frequently-asked Questions, and other information to help you. Educate yourself now, talk with your providers, and begin to determine the best solution for your particular circumstances.
At 9am on September 23rd, the Alexandria SBDC will be presenting a one-hour workshop on this issue to clear up and clarify any remaining issues. The Presenters will be Chris Harrison and Scott Johnston of WorldPay. We encourage everyone who accepts credit card transactions to attend this free one-hour session. Registration is through the SBDC website http://alexandriasbdc.org/event/dip-the-chip/.
Small Business Owners – Don’t put this off!!! Now is the time to act.