There are major changes on the horizon that impact virtually all U.S. rental companies. As an increasing number of renters start to use “smart chip” credit cards, the companies that rent to them should move to accommodate this new method of payment. In just six months, businesses that do not have the proper hardware are likely be held liable for fraudulent face-to-face credit card transactions. Here’s what you need to know, and what steps you should take to ensure your business is compliant.
What is EMV?
To combat the growing problem of large-scale data breaches and increasing rates of counterfeit card fraud, U.S. credit card issuers and businesses are moving to adopt smart chip payment technology, also referred to as EMV (EuroPay, MasterCard and Visa). Smart chip cards provide stronger security than the magnetic strip cards many of us use today. Among other features and security measures, the chips prevent card skimming and cloning. Although the U.S. is one of the last countries to migrate to chip cards, the major payment brands — American Express, Visa, Discover and MasterCard — have started deploying EMV to merchants. If you and your business are cardholders, you may have received replacement cards already in the mail.
How Will EMV Impact My Business?
This October, there will be a major liability shift. Companies – including rental operations – that have adopted the new technology will generally be protected from financial liability resulting from card fraud in face-to-face transactions. After October, if, for example, your business is using non-EMV-compliant hardware, you would likely be held liable for fraudulent transactions.
How Can I Take Action?
This change in liability is a compelling reason to upgrade your card payment equipment to support EMV technology. This is critical to ensure that your business isn’t held liable in the event fraud does occur. And, over time, consumers will likely begin to expect that smart-chip credit card payments are accepted wherever they go. So, take the time to examine your equipment and talk with your technology provider about upgrade options. For more information, read Visa’s guide to building an “EMV Chip Acceptance Game Plan.”
EMV compliance will be a step towards bringing an end to the chaos brought by massive security breaches and credit card fraud.