Are you ready for the shift?

Keeping your business protected against credit card fraud has never been more paramount, but for whom? Does your business have this kind of exposure? There are some exceptions. What business types are included in the liability shift and, most importantly, is yours?

With an astounding amount of misinformation and misrepresentation from both sides of payments industry processors, we want to give you some perspective coming from over 30 years of payment industry experience. So let’s go.

We have noticed that there is a major disconnect with many merchant-provider relationships. In fact, when it comes specifically to the EMV (Europay, Mastercard, and Visa) liability shift, if you have attempted to piece together what all sides are saying about the shift and how it actually applies to your business, you have probably found yourself piecing together many different picture puzzles. We have seen and heard of many industry representatives who are referencing false information to induce business owners into making a hasty decision.

Did you now that there are actually multiple phases to these liability shifts? A lot depends on your type of business and whether or not your card transactions are key entered or swiped.

The first liability shift was effective October 1, 2015 and applies only to retail/restaurant businesses where cards are physically presented. This shift excludes AFD (automated fuel dispensers) and eCommerce transactions. If you have a business that accepts cards and swipes them, you are now liable for any disputed credit card transactions that occur in your business.

I have a business that swipes chip cards. What should I do?

If you have a business that accepts cards and swipes them, you should upgrade your terminal to one that has an active chip reader. Depending on the provider, the cost can range from $0 to $1,000. We realize this is a rather wide price spread and that is one of the

problems. Many merchant service providers who do not attempt to cultivate long term business relationships view this liability shift as a get-rich-quick scenario for themselves. Let us not forget who is the most important part of your business – You!

We plead with you to keep the facts in mind when deciding on whether or not to upgrade your devices or to switch providers. In future articles, we will be examining some of the prevalent myths and how to address them.

For more information, contact Gil Dowling at (804) 916-0412.