DEADLINE APPROACHING – What the EMV Liability Shift Means for Your Winery
If you process credit cards in your winery, you’re probably starting to hear about new payment technology and the upcoming EMV Liability shift. “Chip and Signature and Chip and PIN,” 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 start planning now and you’re prepared. Here’s what you can expect:
The EMV Liability Shift
In October of 2015, the liability for fraudulent transactions will move from credit card issuers to merchants (that’s you!). If an EMV card is presented for payment at the merchant and is swiped or entered manually and the transaction is fraudulent, you are 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.
Merchants should consider the following when or if they should implement safeguards:
What is the total cost of implementation?
What is my current fraud chargeback liability, and does moving to EMV make sense in light of the potential impact to my business?
What other security solutions do I have in place to help with chargeback liability?
It can be very confusing trying to understand everything being tossed around regarding EMV (which protects against fraud) and PCI Compliance (which protects your data from being breached), but these are important factors that will affect your winery down the road. If you offer ecommerce, like online ordering, it’s important to understand that being PCI Compliant won’t protect you from fraud. Only EMV, which requires the credit card to be physically present at the time of the transaction, protects against fraud.
We’ve Got you Covered!
While the liability shift can seem frightening, there’s no need to worry. Practical Business Solutions has partnered with the industry’s leading payment processors to provide you with the most secure, modern winery credit card processing options. PBS has invested time and resources to ensure that we have solutions in place to keep your business running as usual and we’ll have these new devices available for you in the coming months.
So what should you do in the meantime?
You don’t have to react immediately, but you should start planning today. If you’re not sure if your POS is up-to-date, consult your PBS Representative for a quick assessment to determine if your system is ready for the newest payment technology.
Be ready for EMV !!!!