Starting October 1, there will be a major shift in the landscape of credit card usage. The magnetic stripe is going away and the embedded chip is taking its place.
The chip, known as EMV, has been used in Europe for several years. It represents a higher level of data encryption that makes transactions more secure. But if businesses don’t begin to use the new technology, they may find themselves being held liable for consumer fraud under the old system.
As detailed in this Mail Tribune article, businesses that “don't adopt the chip technology will be liable for fraud costs once absorbed by the banks issuing the credit cards.” In addition, businesses should expect increased capital costs as it will be necessary to obtain, either through lease or purchase, new terminals capable of processing chipped credit cards.
All businesses that accept credit cards need to be aware of this upcoming change.