Coming Soon To A Card Reader Near You
September 26, 2015 Banks are updating credit cards with new technology called EVM, or Europay, MasterCard, and Visa. Cards are equipped with a computer chip that is extremely hard to counterfeit, says the Better Business Bureau of Western Michigan. During each use, the chip on the card creates a number that changes after each transaction to make it more difficult for those trying to steal information and make counterfeit cards. If the card’s information and one-time code is stolen, the information cannot be used to create counterfeit cards.
The Better Business Bureau says this new technology has dropped Europe’s fraud rate by 64% and the U.S. is the last major market still using magnetic-stripe-only cards.
So, what does this switch to EVM cards mean for your business? Starting Oct. 1, businesses who do not have EVM processing devices could be liable for any loses due to fraudulent chip card charges.
A report from the Wall Street Journal says approximately 10% of small businesses in the U.S. fell victim to payment fraud in 2013. Small businesses will pay anywhere from $100 to $600 for each new EVM terminal, the low end being mobile readers according to the Journal.
The Journal reports that most small businesses aren’t ready for the EVM change or won’t switch to new systems.
“Nearly two-thirds of companies with 500 or fewer employees say they aren’t ready for the October switch versus 44% of larger merchants with more than 1,000 employees, according to a survey of 579 businesses to be released later this month by the Ponemon Institute, a research firm,” says the Wall Street Journal.
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