Now that the EMV (Europay, MasterCard and Visa) standard has gone into effect, MetroBPS is reminding all establishments which accept credit cards as a form of payment that they must comply with the standard or else face serious financial liabilities.
On October 17, 2014, President Barack Obama signed an executive order to speed up the adoption of the standard and require credit card companies to make the transition from magnetic stripe cards towards those with embedded microchips. As part of the compliance, all retail, restaurant and other establishments had to purchase new chip card readers for their point-of-sale (POS) terminals. The EMV standard took effect on October 1, 2015.
“The new chip cards will ensure that a consumer’s financial information cannot be hacked or stolen, which is important for store owners, retailers and restaurateurs to know,” says Chad Horal, Chief Executive, MetroBPS. “Now that the EMV standard has been implemented, the burden of liability no longer lies with the banks but with the establishments where the customers shop.”
According to research from The Strawhecker Group, only 27% of U.S. merchants are currently ready to comply with the EMV standard this year and only 44% will be EMV-ready by the end of the year. Among the merchants in this category, 69% of shoe stores and 59% of department stores were EMV-ready, compared to stationery stores (24%) and book stores (23%).
“Within two years, up to 90% of these stores will be EMV-ready,” Mr. Horal says. “A lot can happen in two years. It is important that these stores comply with the EMV standard sooner rather than later, unless they wish to be held liable for any instances of credit card fraud or identity theft.”
For more information, call (800) 942-7970 or visit www.metrobps.com.