You might have noticed that many businesses no longer have a simple type of payment terminal. As technology advances and security becomes more and more important for the happiness of your customers, it can be essential for you to consider other ways to perform transactions. One of the newer features that a virtual terminal is now equipped with is the ability to read an EMV chip.
Here are some reasons why you might want to consider upgrading your terminals to read EMV chips.
A greater sense of security for customers
EMV chip cards are inherently safer than traditional cards that are swiped. Not only do they have a more complex method of encryption that helps to avoid any hacking, but it is also more difficult to obtain information from this technology. This can help your customers to feel more secure knowing your business has made keeping their information safe a priority. As your competition starts utilizing terminals that employ chip cards, you might also need to consider this as a way to keep clients from heading to another store.
You might be penalized for not having one
While this isn’t necessarily the case for small businesses currently, in the future, you might start to see merchant account providers cracking down on businesses who do not offer an EMV reader. It’s not required by law to have this type of terminal yet, but some companies might start requiring that small businesses register for an EMV chip certification before they will issue new terminals. While this might seem like extra work, it could be a problem if you haven’t made the switch within a few years as swiping starts to phase out.
You might be leaving your business liable
As EMV chip machines become more common, it’s possible that not having one could put your business in a dangerous position. You might be liable for fraudulent charges because you have not upgraded to a better form of technology for your business. If a stolen or fake credit card is run on your machine and you don’t have the correct terminal to identify that it isn’t real, then you might be the one facing the consequences. As credit card fraud cases continue to increase, small business might be the ones suffering the most from not having a greater method of security.
Failure to comply can cost you money
If you already have a chip reader and you choose to swipe a card instead, you might have to pay a penalty. Because transactions are so much safer with an EMV chip reader, merchant service providers are requiring that many businesses look to switch or they will have to pay fines. Overall, it can be simpler for you to switch over and start using a chip reader instead of having to pay penalty costs down the line for swiping a card instead.
As payment methods grow and change, it’s up to small businesses to adapt in order to meet the needs of clients and payment providers. With an EMV chip reader, you are preparing your company for the future while adding another layer of security.