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EMV NON-COMPLIANCE ENCOURAGES CHARGEBACKS

July 7, 2016

As America approached the deadline for EMV compliance back in October of 2015, the majority of merchants still hadn’t upgraded their equipment to avoid liability for fraudulent transactions.

“The deadline was pushed out so many times, I don’t think people took the transition seriously,” Brandon Skinner, Riverside Payments President and CEO, stated. “As a result, fraudsters continue to prey on those businesses who have failed to comply with the new industry standard.”

In an Article posted on Koin 6 News in September of 2015, Skinner states, “Nearly 80% of the business owners in the Portland metro area are still NOT EMV compliant, that’s one of the big things why we’re reaching out right now, is because unfortunately, what’s going to happen is somebody’s going to get hit with fraud and then people are going to start to listen.” 

Though the transition has been a slow one, more and more merchants are realizing the value of converting and complying with “Chip Card” technology, while still others have yet to jump on the bandwagon.

While large corporations like Target and Home Depot took a blow to their reputation after hackers stole consumer information, they are large enough to recover. “Target admitted that the fraud probably would have never happened had they updated their equipment,” Skinner stated. “Small and medium sized business owners cannot afford to take security risks that could cripple their business.”

Many merchants who haven’t converted to chip card technology are seeing an increase in chargebacks. An article by Maria Korolov on CSO Online states, “According to an April report by The Strawhecker Group, small and midsized merchants saw a 31 percent increase in the number of chargebacks right after the liability shift took effect.”

One of the best ways to guard against fraud and rising chargebacks is to equip your business with EMV terminals. Skinner affirmed, “This will not only increase your security, but help lower your processing rates, as the lower the risk—the lower the rates.”

Contact Riverside Payments for more information about protecting your business against fraud and upgrading your equipment to comply with EMV technology.




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