Effective October 1, 2015, new credit card additions will change the way we pay for goods and services. An article by Gene Marks in Accounting Today states that new credit cards with EMV chips are currently being distributed to card owners. These EMV chips are designed to fight fraud and provide a more secure purchasing experience for the consumer. In order to utilize these EMV chips, some retailers must purchase new point of sale equipment. If the merchant does not do so, and they accept a fraudulent transaction, the merchant will now be liable for the costs.
These costs were previously covered by the credit card company, so failure to upgrade equipment could be very costly for some companies. Already being utilized in parts of Europe, Asia, and South America, these chips are proven to reduce credit card fraud. Unfortunately, many small merchants are not aware of EMV or what they need to do to take advantage of it. Failing to make a change could cost merchants thousands through customer loss and huge liabilities.
For more information on EMV chips and how they could affect your business, please visit the referenced article by Gene Marks in Accounting Today, or contact Paul Gilbert at pgilbert@brickleydelong.com or (231) 726-5860.