As of October 2015, the EMV card protocol aka Europay, MasterCard and Visa will become the standard for U.S. POS credit card security payments. The larger issue now is small business owners are not fully prepared for this credit card change taking place. The reasons for small business merchant owners not being ready for EMV vary from hardware to software.
Larger business owners such as Walmart or Target have the ability to get prepared for the transition into EMV card as the income is available. It is the smaller merchants who are struggling with gathering together the necessary finances to make this change. Some merchants can do this change before October and there are some merchants who will need to wait and perform the change afterward.
The change taking place is quite important because it will give more security to the consumer. The EMV card is actually a security protocol as every credit card will now have a computer chip within instead of using the magnetic strip on the outside. Each merchant will have specific hardware used at the checkout to read these cards. What makes the EMV security more beneficial is every credit card is given one specific chip that is unique only to that specific card. When the EMV card is read, a code is then sent into a card-reading device to initiate a purchase transaction. There will still need to be authorization for purchases so every card holder will need to provide his or her signature on a receipt to finalize the transaction.
Many countries have already begun the use of EMV card technology within their purchasing technology. Because of the above and the small pressure from major credit card companies merchants do feel the pressure to make this change. After October 2015 merchants can be held financially liable if credit card data is stolen from a magnetic strip reader which is still in use. In other words, the top four credit card companies are putting the pressure on merchants to make the change and obtain new hardware and/or software.
EMV card protocol is a great way to prevent credit card fraud unfortunately it is only part of the solution. This is a great beginning but this protocol is only half of the solution because the EMV protocol may work great for offline purchases but there are reservations on how it will benefit many consumers who purchase goods and services online. In other words, it seems as if the EMV card protocol is unable to do much for protection against online fraud at least for now which raises concern. The EMV card is going to be new for consumers and merchants with this transition taking place and there will be many lessons learned.
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