Everyone is receiving their new credit cards with the fancy chips. And we find many shops have not replaced their credit card terminals.
First let’s talk about the EMV Card. EMV stands for “Europay, MasterCard and Visa”. In a nutshell, this was setup to create world-wide standardized protocols and to reduce credit card fraud. It has been well established in the EU, Canada and basically the rest of the developed world. Now the US has come online.
As of October 2015, anyone accepting credit cards will need to use the new credit card EMV readers (POS terminal) so that purchasers can insert their new chip credit cards. Eventually the purchaser will be able to enter a PIN to finalize their transaction although for now a signature is still required. Swiping credit cards will be a thing of the past. This is to prevent the fraud that has become so rampant here.
If a merchant does not have the new POS terminal and the customer uses a chip credit card, the merchant will be held liable for any fraudulent transactions that occur. This is what is being referred to as the “liability shift” since an EMV reader would have prevented the fraud.
Many business owners don’t want to purchase the new POS terminals because they don’t think it is worth spending the money to upgrade. We urge our clients to make this investment. Fraud charges can wipe out a business. We also urge our clients to purchase Cyber Liability Insurance.
For more information or answers to your insurance questions, contact us at Allan Block Insurance Agency, www.ambins.com, located in Tarrytown, NY in the heart of Westchester County, a key business district near New York City. We write auto, home, renters, condo, co-op, personal, business, life and group insurance for clients locally and in NYC, CT, NJ, PA, MA and many other states. The Professional Agency with the Personal Touch.