September 29, 2015
PayPal has announced that the PayPal Here Chip Card Reader will be available in the USA today, (September 30) just in time for the October 1 deadline in a nationwide effort to reduce fraud, raise security and protect sensitive data. Beginning October 1, 2015, for US merchants to be EMV-compliant, they will need to have an EMV card reader or be held liable for fraudulent activity. The chart below is a visual of the shift from who is currently liable and who will soon be held liable for any financial loss accrued from fraudulent transactions.
To put this transformation into a cultural context, there was a time when a surveillance camera was an adequate deterrent for thieves. Even though security cameras varied in price, picture quality and required hours of review, many merchants invested in the device to protect their store. Burglars often targeted brick-and-mortar stores that didn’t have a security camera. Likewise, it’s only a matter of time before merchants guard against modern cybercriminals.
The FinTech ecosystem is currently going through a rapid payment metamorphosis with many more challenges, triumphs, trials and errors ahead. In order for merchants to maintain a seamless and secure payment experience for their patrons, they are going to have to be aware of these changes and adapt to new payment technologies. While US merchants get acclimated with their new in-store EMV readers, hackers are surely changing their tactics by preying on the weakest targets and exploiting easy e-commerce fraud. Regardless of the business size, it’s imperative for merchants to take payment security seriously, as the results will directly affect their bottom line.
PayPal Here accepts chip card, contactless NFC (near field communication) including Android Pay, Apple Pay and
For supplemental information on this topic, check out PayPal Here With EMV and NFC, the article provides additional details regarding a new executive order—the first part of the new BuySecure Initiative that takes critical steps to protect consumers’ financial security and improve confidence in the marketplace.