23 Jul How the Switch to EMV Will Help to Limit Fraudulent Transactions?
A critical component to credit card processing is the terminal that is used at the point of sale. While there are various types of terminals that you may have access to through your merchant accounts, the EMV terminal is a top choice because of its ability to limit fraudulent transactions. By understanding more about how this type of terminal works and the benefits that it can provide, you may determine that it is a great option for you.
An Encrypted Transaction
An EMV terminal is designed to be used with all types of credit cards, but it is truly advantageous when it is used in conjunction with credit cards that have chips embedded in them. Many major financial institutions are using chip cards for both credit cards and debit cards now, and because of this, many consumers are looking for retailers and others that use EMV terminals. Essentially, the chip and EMV terminal must be used together for maximum benefit. The combination of the chip and the EMV terminal serves as a method for card authentication and cardholder verification. It also can provide more advanced authorization for the transaction. This will not eliminate fraud, but it will drastically reduce the risk and occurrences of fraud and identity theft related to credit card transactions.
Credit card fraud is a growing problem today, and this is a costly issue that impacts many people each year. More than that, changes in legislation may make businesses liable for some types of credit card fraud that originate from their venue if they are not using EMV terminals with merchant accounts. This new law can result in increased liability for businesses that do not make the upgrade to their EMV terminals. Keep in mind that an EMV terminal is designed to offer benefits with point-of-sale transactions rather than online transactions. Therefore, e-commerce companies may need to take other steps to limit fraudulent activity.
Because the new law goes into effect in October 2015, it is beneficial for business owners to begin learning more about EMV terminals and to begin implementing their use if they plan to do so. These are beneficial to consumers because they can reduce fraud, and because fraud now comes with liability for businesses, there is a benefit to businesses to make this upgrade. It is important to review existing merchant accounts and to learn more about the EMV terminal options available now before the new law goes into effect.