In only two short months the EMV deadline will be upon us. Many retailers remain confused about the deadline and what it means for their business, as a result there are many myths and misconceptions about the impact the deadline will have. This infographic is aimed at answering three of the top myths around EMV, and how your business can best prepare for the transition.
VSR and Cayan bust popular myths about the looming deadline and help VARs get educated on this big opportunity.
43% of POS developers and technology resellers said preparing for the EMV liability shift is their customers’ top payment security priority in 2015. As a channel technology provider, you play a critical role in helping small and mid-sized merchants prepare. VSR and Cayan offer this guidance to help VARs and ISVs combat some of the top myths surrounding EMV technology.
VARs are ramping up to sell payment security. Make sure you’re among them, or you’ll miss out on this critical business solution. In a recent survey 49% of VARs currently sell payment security, with 70% responding that they plan to sell it in 2016.
Myth #1 - EMV isn’t going to happen.
Reality: The major card brands continue to reinforce their commitment to the October 2015 deadline.
Did You Know?
- It’s estimated that 50% of all cards in the U.S. will be chip-enabled by the end of 2015.
- The U.S. is one of the last countries to adopt EMV. As a result the U.S. accounts for 47% of global fraud, but only 23% of overall transactions.
- As recently as April 2015 the retail trade group Food Marketing Institute petitioned the card brands to push back the deadline to 2016. Representatives for MasterCard and American Express told the Wall Street Journal that they do not intend to change the existing deadline.
Myth #2 - Only large merchants need EMV compliant technology.
Reality: Many merchants won’t be ready, especially small- and mid-sized businesses.
Did You Know?
- All U.S. merchants using non EMV-compliant technology will assume liability if they process a chip-card that is found to be fraudulent.
- Who’s not likely to be ready? According to a recent report one in four restaurants and forty percent of retailers will not have a roadmap in place by the end of this year.
- Once larger merchants make the shift, smaller businesses become even easier targets, and hackers will target the little guys.
Myth #3 - Technology upgrades are expensive and not worth it.
Reality: By shifting to EMV, merchants can eliminate exposure or losses to card fraud for card-present transactions at their business.
Did you know?
- By most estimates, the cost of EMV migration ranges from $500 to $1000 for terminal updates.
- Financial consequences of maintaining non-EMV compliant POS technology will outweigh the cost of upgrades. The U.S is looking at a total investment of approximately $8 billion to get fully up to speed with EMV standards. Fraudulent credit card activity costs the U.S. nearly $9 to $10 billion each year.
- As chip cards take hold, consumers will embrace them as the preferred way to pay. Merchants that fail to embrace security will be at risk of losing business.
Want to know even more about EMV? We’ve got plenty of resources for that:
If you’re a little rusty on the EMV basics, here’s an infographic to guide you through what the liability shift means and what will change for businesses that don’t switch to an EMV-ready payment terminal by October 1.
Ready to get prepared for October 1, but not sure where to start? We have a whole resource center dedicated to answering your questions and guiding you through the switch.
Bonus: switching to an EMV-ready terminal that also processes NFC transactions presents an opportunity to get in on the mobile payments game, too.