Small Business Compliance
If you haven’t shifted your point of sale terminals to remain compliant with the new EMV requirements, now’s the time! Karen Stern, Partner in Charge of the Entrepreneurial Services Group, discusses the importance of remaining compliant in this month’s “Financial Fitness,” as featured in Small Business Monthly.
Since October 2015, merchant banks have taken the necessary steps to prevent fraud by issuing chip and pin cards to their customers. By putting these smart cards in consumers’ wallets, banks are shifting the liability of fraud from them to you, the merchant. These smart payment cards and the terminals that accept them are the new technical standard for card payment, and are often referred to as EMV.
Many organizations have updated their technology to accommodate this shift, but 60% of point of sale (POS) terminals in the U.S. still need an upgrade to accept EMV technology, according to paymentsource.com. While some organizations are waiting to invest in the necessary technology, they might be costing themselves more in the long run.
If you are one of the many organizations holding out on EMV implementation, here are a few things you need to know:
- Size doesn’t matter. If any customer uses a credit or debit card to pay for your goods or services directly, then the Payment Card Industry (PCI) Data Security Standards (DSS) apply to you.
- If you don’t pay now, you’ll pay later. Some businesses might not be able to afford the update to accept the smart cards, but if you’re found to be out of compliance, you may be subject to some hefty fines.
- The risk is greater than the reward. If you do not implement the appropriate technology and you are the victim of a data breach or fraudulent charges, not only will you face more fines, but you are required to report the breach, which can hurt future business.
Bottom line – if you haven’t made the shift to accept EMV payments, you could be hurting your business financially in the long run. If you have any questions about the compliance requirements, contact your advisor.