You may have noticed that most credit cards now have a finger nail sized chip embedded into them. This is a new security feature meant to combat credit card fraud. Europe has been using this system for many years, and now the U.S. Visa/MasterCard/AMEX systems are jumping on board.
Effective October 1st, 2015, the credit card industry will shift counterfeit liability in point of sale transactions to the party responsible for an EMV chip transaction not occurring. In other words, if a fraudster swipes an EMV card in your non-EMV swiper, you won't be reimbursed by the credit card company for the fraudulent transaction. For detailed information on this transition, please click here.
A new solution isn't available yet for our app and card reader, because the technology is still being integrated into online platforms. We are waiting to see what the ecommerce industry decides its standards will be. We are currently working with merchant providers to evaluate accepting transactions through a new EMV reader, as well as evaluating the cost to develop and sell that technology.
In the meantime, keying in transactions from EMV cards (rather than swiping) will protect you from the fraud liability shift.
For detailed information on this transition, please click here.
Please also click here to see our article in the Growth Hub about these changes.