The ability to use a card reader to collect payments in the field is indispensable to small businesses, but businesses collecting payments in this manner should be aware of a major change credit card providers are about to unleash.
To combat credit card fraud, all major credit card manufacturers have been mailing replacement cards equipped with EMV chips to consumers. These cards purportedly offer a more secure means of transaction. While any existing card reader should be able to process these new cards, a coming shift in credit card company policy should prompt your business to upgrade to a reader with the ability to read EMV chips:
Starting October 1, the liability for incidents of credit card fraud will shift from the bank processing the payment to the business collecting the payment. This shift in liability can be prevented only if your business upgrades to the new reader technology.
How should your business protect itself? Contact your current payment collection service provider and ask them about the coming shift. Most of these service providers are doing everything in their power to prepare their customers for the transition, and each almost certainly offers a solution to deal with the issue. (If your provider plans to ignore the shift, it might be time to consider migrating services. Our primer on the available options might make a good starting point.)
- The Washington Post on the shift and small business awareness.
- Frequently Asked Questions regarding the EMV shift.
NOTE: Payment collection in iFleet or Routzy will be unaffected by the upcoming changes, as the issue concerns hardware specifically.