Yes and no.
Photo by Devon Janse van Rensburg
There are no laws telling restaurants or any other businesses that they absolutely need to use an EMV reader. However, credit card companies shifted the responsibility in terms of credit card fraud to store owners. If you click on that link, it will take you to Visa’s page outlining the dangers of not observing their demands. While you do have a choice, if you choose not to use EMV, then you will be responsible for any fraud that happens in your store.
1. What is an EMV Reader?
 Photo by Nathan Dumlao |
EMV is an acronym for Euro Pay, MasterCard, and Visa, the three mega credit card companies that first dreamt up this fraud-fighting feature.
As many of you may note, a small silver square is visible on any of your new credit cards. This was not to look more futuristic or to appear reminiscent of The Matrix. In fact, it is a microchip charged with embedding consumer information, allowing for more secure transactions to be made. Rather than a mindless swipe, dipping a card into the terminal has become the norm.
During the payment process, chips provide a unique transaction code for each purchase, making transactions more secure. Of course, just like anything else, when the security evolves, so do the methods of those trying to breach it.
2. Why Use an EMV Reader for my Restaurant?
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The first and most obvious reason is because it fights against fraud. But what if people are finding a way to commit fraud anyways? What's the point then?
Well, people will always find a way, but let's focus on what matters: the fact that credit card companies will not be liable for fraudulent charges if you do not use an EMV reader. That really leaves businesses in trouble.
Now, when a company experiences fraud because they are not EMV compliant, they will experience a much greater loss than they would have before. CC companies have a right to refuse coverage for fraudulent charges to those without credit card chip reader machines. Businesses, especially small ones, will suffer. They will now need to foot the mandatory bill for any fraud, not including the goods lost, as well as any extra fees. Some companies are now charging extra money to those who still refuse to make the switch by turning up the heat.
As a responsible store owner though, you really need to consider, are you doing enough to protect diners’ personal data?
And are you doing enough to protect yourself?
If not, then maybe it is time to make the switch to an EMV reader.
3. When is it time to switch to an EMV reader?
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ASAP.
Don't let EMV compliance laws scare you. Then again, don't ignore them either.
If you have been reading this post and thinking about the wonderful establishment you have to lose, then maybe it is time to make the switch. The main reason many places are holding-off is the concern for costs. Saving your quick service or fine dining establishment from the having to cover fraudulent charges, loss of inventory, and other expenses when compared to the one time purchase costs of buying an EMV card reader does not compare. And don’t worry, the process is not daunting.
Establishments just need to contact their POS provider and let them know they want to update their payment system from an MSR to an EMV. With most providers, businesses will need to use a specific reader and merchant processing company, however, with Ordyx, owners are allowed to choose which EMV and merchant processor they want to work with.
4. Is an EMV reader actually more secure?
 Photo by Ryan Born |
In some ways, yes, it is.
You may even be asking: how is an emv reader more secure?
The microchip technology adds in an extra shield of protection by giving credit cards an embedded code for each purchase. It also prevents credit card scammers from duplicating credit cards by using skimmers. Skimmers are little machines or card readers attached to payment terminals intended to skim information from any cards swiped. This happens more often than not with MSRs (magnetic stripe readers.) Gas stations, shady restaurants, public ATMs, and in many other places are all hot spots for these fraudulent swipes.
With a chip card, this is no longer possible since the user's information is more secure. The problem no is that scammers are just stealing card numbers and information and making only online purchases. No matter how much we avoid or fight it, crime will always find a way. The good news is that credit card companies are still planning to take responsibility for any fraud committed, as long as we follow their rules.
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Everything boils down to what works for you while trying to comply with the new EMV requirements.
Do what is best or your business and the rest will follow.
Do what is best or your business and the rest will follow.
About the Author:
This article was written by Sloane Viner for Ordyx POS.
This article was written by Sloane Viner for Ordyx POS.
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