Even though only a quarter of all credit card transactions happen here in the United States, almost half of the world’s credit card fraud occurs here. The recent high-profile security breaches at some of the country’s largest retailers are behind the motivation to make the switch to EMV quickly. It’s time to get on board and make the switch for your establishment. Spark Business IQ, Stephanie Ericksen, outlines the top ten steps that will help with the transition.
Part Three in a Three-part Series
If your business isn’t ready for EMV chip payment cards, it’s time to get on board.
By the end of 2015, the Payment Security Task Force, which includes representation from Capital One®, estimates that over 575 million EMV chip enabled cards will be in circulation across the United States.
Meanwhile, responsibility for global counterfeit liability will shift to the party that has not upgraded to chip technology: the issuer (the bank) or the merchant. If neither party has adopted chip technology, the liability for counterfeit fraud will remain with the issuer.
As a small business owner, get started now to prepare your business for migration to EMV chip cards. Depending on the size and type of your business, as well as the payment system you’re using, the process could be fairly complex, so don’t delay. Here are ten steps to help small businesses prepare for EMV chip technology migration.
#1.Figure out who will head up the process
The first step in getting your business ready for EMV chip technology is to decide who at your business is going to be responsible for the migration. Educate them about the changing technology, set expectations, and determine how you will work together on this effort. If your business is small, the full migration may be up to you.
#2. Assess your current electronic payment system
Identify the electronic payment equipment you have and learn more about what it currently does, or write down questions you’ll need help answering. This will make planning the upgrade more efficient.
#3. Gather information about EMV chip technology and what it means for your business
Meet with equipment and software vendors to collect relevant data and to learn more about exactly what you’ll need to upgrade your current POS system to accommodate. For information on required EMV chip specifications visit EMVCo; The Official Source for Information on specifications.
#4. Compare what you have with what you need
Using information gathered in steps one through three, compare what you currently have with what you need to become EMV chip compatible. The gap between where your business is and where you want it to be when it comes to processing electronic payments will form the basis of your migration plan.
#5. Prepare an initial internal plan
Create a roadmap identifying each major step required to reach full EMV chip technology integration. Set goals, make decisions about system capabilities, hardware, and software options, and set a timeline. Send out Requests for Proposals (RFPs) to stakeholders based on this information.
For more information visit International Retailer’s Group’s EMV Chip Technology Retailer Roadmap, which includes lists of vendors providing services to U.S. based businesses.
#6. Finalize your business plan
Review the information you’ve collected and the RFPs you’ve received, and use it to finalize decisions regarding replacement, upgrading, and acquiring new equipment for your chip migration.
#7. Meet with external team
Review your timeline, budget, and contingency plans with the external vendors you’ve selected, and move forward with your plans. (You’re almost there!)
Test your EMV chip system to ensure it works properly. Confirm that it meets any certification requirements. Before rolling the new system out to your team and customers, make sure the process will be as painless as possible by learning the ins and outs of the system yourself and troubleshooting any potential hiccups.
#9. Train your staff
Your new EMV chip system is only as good as the people operating it.
Train staff on how to process chip transactions, highlighting the differences between magnetic-stripe and chip-enabled cards. Cover what to do in the case of a card or reader malfunction to ensure everyone is on board with the changes and processing requirements.
#10. Install the new payment system
The final step to getting your business ready for EMV chip payment technology is to officially install the system in your business. Put up signs on all equipment to let your customers know where and how to use standard chip cards as well as contactless payment technology such as Visa payWave.
By preparing for tomorrow’s payment technology today, your customers can be assured that transacting at your business is more secure. Get ready for the next generation of electronic payments, and help make payments safe through smarter technologies so your consumers and you can pay or be paid with confidence.
For more information, see the Visa U.S. Merchant EMV Chip Acceptance Readiness Guide.
Interested in learning more about EMV chip cards and business? Part One in our series covers EMV technology basics for small business owners, and part two covers the benefits of migrating to the new technology for business owners.
Capital One does not provide, endorse, nor guarantee any third-party product, service, information or recommendation listed above. The third parties listed are not affiliated with Capital One and are solely responsible for their products and services. All trademarks are the property of their respective owners.
EMV chip technology only works to prevent counterfeit fraud when both the merchant and cardholder use EMV technology.