In an effort to reduce fraudulent credit card transactions, major credit card companies are equipping new cards with micro-chips that are much harder to counterfeit than magnetic stripes. New EVM chip cards allow safer transactions for vendors and customers and reduceinstances of credit card fraud.
However, in order to process chip cards, businesses need to upgrade their payment processing terminals. On October 1st, the liability for certain types of fraudulent transactions will shift from banks to businesses that do not have the technology to process chip cards. If a fraudulent transaction is reported on a chip card from a business with EMV-compatible processing, that business will be held liable.
To adapt to EMV technology, businesses should contact their payment processors about upgrading their devices to be EMV-capable and to purchase or upgrade to an EMV enabled terminal.
For more information, see what the Department of Small Business Services has to say.