Changes To Credit Card Processing.
From our Partner CardConnect. As of October 2015, all US merchants processing credit card transactions will need to use a terminal/card reader device that can read the chip cards, or the liability for fraudulent transactions will switch from the bank to the merchant. At this time, transactions that are not swiped are not affected by this change in EMV standards.
Why this change? The United States is the epicenter for cybercrime. Out of last year's total global credit card fraud losses, 47% of them occurred in the US - even though only a quarter of all credit card transactions happen here. In fact, 43% of US businesses were exposed to credit fraud last year alone. Why switch to EMV?
- Lower risk for fraud, thereby decreasing fraud costs
- Improve dispute resolution
- Reduce the PCI annual validation requirement for qualified merchants
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