An important piece of the compliance puzzle is making sure your customer’s information safe. EMV chip and pin technology, or “the chip” as you may know it, is now the worldwide standard for interaction between smart cards and approved payment devices. "The chip", when used with a PIN (Personal Identification Number), optimizes fraud prevention at the POS (Point of Sale). Under PCI compliance guidelines, merchants and processors were required to adopt EMV technology by October of 2015. If you are not accepting "the chip", you may not be PCI compliant.
Gift Cards Keep On Giving
Offering branded gift cards not only provides a convenience to your customers, but they’re also a smart addition to your marketing mix. According to GiftCards.com, over 90% of American consumers either give or receive gift cards annually. Of those on the receiving end, 72% spend more than the value of their gift card. Keep in mind, it may even take several visits to spend the entire amount, building instant repeat business. Think of the gift card like a tiny billboard in a consumer’s wallet, a small investment for a big reward.
EMV's Impact on Fraud Prevention
According to Visa, from May 2015 - May 2016, chip-enabled merchants saw a 47 percent drop in counterfeit fraud. MasterCard has recorded a 54 percent decrease in counterfeit fraud costs among its EMV-ready merchants from April 2015 to April 2016.
Conversely, MasterCard has also seen a 77 percent increase in counterfeit card fraud year-over-year among merchants who have not yet moved to EMV or are in the process of doing so.
Reduce Your Compliance Costs
EMV non-compliance fees are fees that your credit card processing company can add to your bill if you don’t use EMV-capable equipment. Fees are typically charged as a percentage of card present transaction volume. In many cases, the more you process without an EMV terminal, the higher your monthly fees will be for you. Please check your credit card statement for an EMV non-compliance fee often referred to as an “EMV non enabled fee.”
EMV Compliance - Protect Yourself
Business owners, neglecting to comply and convert to the new EMV technology could result to fraud liability for any counterfeit concerns. You also could run the risk of violation fines for not being EMV compliant. If you haven’t yet migrated to the EMV technology or if your small business is just starting, it’s not too late to do so.