What’s Your Fraud Got To Do With Me?

Skip_10206523522381354_1449400610_n (3)What the EMV Fraud Liability Shift means for SMBs.

Recently, while bringing my beloved pup Skipper to his doggie day care, (a doggie must-have given his affinity for shoes and cushions), I was informed by the owner that it was time to renew my monthly
package.

Wallet in hand, I brandished a new credit card, ready to rack up some reward points. As I handed it over, I noticed the small, metallic chip on the front of the card indicating that it had been updated with the EMV security feature.

So, what is EMV? EMV stands for Europay, MasterCard, Visa, and is the globally accepted standard for credit and debit cards that is finally making its way into U.S. payment systems. This technology offers a new level of protection for anyone in the payment card usage chain.  Thanks to microprocessor technology in that shiny, little chip, data is more secure, and validation methods deployed when the card is used make it extremely difficult to clone or skim.

I asked the owner if he had upgraded his payment system to be EMV compliant, and with a slight eye roll and subtle mutter of complaint, he confirmed that he had, but that it was not without its issues,
and cost.

As a marketer in a financial/B2B space with specific experience in fraud protection, I have been aware of the pending shift from the outdated magstripe technology—which is the black, magnetic stripe on the back of your credit card that has been rendered pretty much useless by savvy fraudsters—to the EMV or “chip” card for a long time. But while understanding the competitive landscape and messaging around fraud protection for large financial institutions, I hadn’t really come face to face with the impact of this shift for SMBs (small to medium size businesses). Until now, with Skip at my feet, paying for doggy day care.

Fraud happens.

Most of us are probably aware of data breaches in the world around us.  It’s in the headlines.  It’s in our wallets.  It’s a part of our national consciousness. In fact, according to the Chapman University Survey on American Fears, more Americans are afraid of credit card fraud and identity theft than they are of terrorism. (It also trumped spiders, clowns, and public speaking according to a 2014 Gallup Poll.)

Big business fraud that we see in headlines is, in and of itself, a big business.  When data breaches happen to the Targets and Home Depots of the world, not only are they responsible for millions upon millions of dollars to cover loss, and litigate over liability, but they are likely spending just as much to invest in technology upgrades, replace compromised cards, and work to rebuild consumer trust.

For the consumer, while the thought of data theft is a complete violation, many times the disruption to an individual is minimal, if noticed at all, as card holders are not held liable, and improved anti-fraud technology has gotten better at stopping fraud in its tracks once it’s been detected. So even with the enormity of costs in fraud recovery, large corporations and their banks will make the necessary shifts to cover a very large tab, eventually returning to business as usual. And people like me just continue in our daily routines.

For small businesses, however, loss of any kind can hit the dinner table, and recovery from fraudulent activity takes more than moving some line items.

Small business gets a bigger hit …

Adaption to the technology required to comply with EMV payments has been slow for smaller businesses.  One reason may be general lack of awareness in the U.S. as card issuers are shifting; another is likely the perceived effort and cost to upgrade payment terminals. Major fraud has been seen more frequently at the big box level, and system upgrades for smaller merchants haven’t been a priority.  Until now. This October, if you are the proprietor of a smaller business, before you can say, “Where are those Halloween decorations?”, you may be making that change after all.

As of October 1, the United States, the last of the G20 countries (a group of the world’s 20 most powerful economies) to adopt the EMV standards, will have a shift in fraud liability to parties that are not EMV compliant. This means that if a stolen or counterfeit EMV Chip enabled card is used to make a card-present purchase, a business owner would likely get hit twice if they have not upgraded their payment system. Not only would they be down any stolen merchandise, but the coverage, or “charge-back”, of the consumer’s card loss falls on them as well.

While a small business owner won’t be forced to upgrade their system, the cost to comply may be worth the peace of mind in the long run, particularly as this standard becomes more widely accepted among consumers, and before criminals begin to recognize the businesses that have neglected to make updates.

So, now what?

If you are a business owner, and you have been reluctant to make the necessary upgrades for EMV compliance, it’s OK!  You can accept card payments as cards are still magstripe enabled, and there will be no mandate on your business. But if you don’t already have a plan in place, now is probably a good time to get moving — even if you have not had a high occurrence of fraudulent charges in the past.

As you do this, here are a couple helpful hints:

  1. Get ready: Check out your current POS. You may have an EMV reader slot and just need to upgrade your system software and certification for compliance vs. doing a total terminal replacement.
  2. Get informed: Contact your POS provider and find out everything you need to know to be compliant and ask them for recommendations for upgrades or replacement.
  3. Get help: Check out some of the information and incentives offered by companies like American Express and MasterCard to assist in fraud prevention and upgrading your system.

For smaller businesses, especially those like my doggie daycare, it’s important that they are kept as safe as those that they care for, and complying with the standards that will protect them from fraud is one way to keep their focus where they need it the most.

 

How can we help you make change?

There are no comments yet. Be the first and leave a response!

Leave a Reply

Your email address will not be published. Required fields are marked *

What’s Your Fraud Got To Do With Me?

Skip_10206523522381354_1449400610_n (3)What the EMV Fraud Liability Shift means for SMBs.

Recently, while bringing my beloved pup Skipper to his doggie day care, (a doggie must-have given his affinity for shoes and cushions), I was informed by the owner that it was time to renew my monthly
package.

Wallet in hand, I brandished a new credit card, ready to rack up some reward points. As I handed it over, I noticed the small, metallic chip on the front of the card indicating that it had been updated with the EMV security feature.

So, what is EMV? EMV stands for Europay, MasterCard, Visa, and is the globally accepted standard for credit and debit cards that is finally making its way into U.S. payment systems. This technology offers a new level of protection for anyone in the payment card usage chain.  Thanks to microprocessor technology in that shiny, little chip, data is more secure, and validation methods deployed when the card is used make it extremely difficult to clone or skim.

I asked the owner if he had upgraded his payment system to be EMV compliant, and with a slight eye roll and subtle mutter of complaint, he confirmed that he had, but that it was not without its issues,
and cost.

As a marketer in a financial/B2B space with specific experience in fraud protection, I have been aware of the pending shift from the outdated magstripe technology—which is the black, magnetic stripe on the back of your credit card that has been rendered pretty much useless by savvy fraudsters—to the EMV or “chip” card for a long time. But while understanding the competitive landscape and messaging around fraud protection for large financial institutions, I hadn’t really come face to face with the impact of this shift for SMBs (small to medium size businesses). Until now, with Skip at my feet, paying for doggy day care.

Fraud happens.

Most of us are probably aware of data breaches in the world around us.  It’s in the headlines.  It’s in our wallets.  It’s a part of our national consciousness. In fact, according to the Chapman University Survey on American Fears, more Americans are afraid of credit card fraud and identity theft than they are of terrorism. (It also trumped spiders, clowns, and public speaking according to a 2014 Gallup Poll.)

Big business fraud that we see in headlines is, in and of itself, a big business.  When data breaches happen to the Targets and Home Depots of the world, not only are they responsible for millions upon millions of dollars to cover loss, and litigate over liability, but they are likely spending just as much to invest in technology upgrades, replace compromised cards, and work to rebuild consumer trust.

For the consumer, while the thought of data theft is a complete violation, many times the disruption to an individual is minimal, if noticed at all, as card holders are not held liable, and improved anti-fraud technology has gotten better at stopping fraud in its tracks once it’s been detected. So even with the enormity of costs in fraud recovery, large corporations and their banks will make the necessary shifts to cover a very large tab, eventually returning to business as usual. And people like me just continue in our daily routines.

For small businesses, however, loss of any kind can hit the dinner table, and recovery from fraudulent activity takes more than moving some line items.

Small business gets a bigger hit …

Adaption to the technology required to comply with EMV payments has been slow for smaller businesses.  One reason may be general lack of awareness in the U.S. as card issuers are shifting; another is likely the perceived effort and cost to upgrade payment terminals. Major fraud has been seen more frequently at the big box level, and system upgrades for smaller merchants haven’t been a priority.  Until now. This October, if you are the proprietor of a smaller business, before you can say, “Where are those Halloween decorations?”, you may be making that change after all.

As of October 1, the United States, the last of the G20 countries (a group of the world’s 20 most powerful economies) to adopt the EMV standards, will have a shift in fraud liability to parties that are not EMV compliant. This means that if a stolen or counterfeit EMV Chip enabled card is used to make a card-present purchase, a business owner would likely get hit twice if they have not upgraded their payment system. Not only would they be down any stolen merchandise, but the coverage, or “charge-back”, of the consumer’s card loss falls on them as well.

While a small business owner won’t be forced to upgrade their system, the cost to comply may be worth the peace of mind in the long run, particularly as this standard becomes more widely accepted among consumers, and before criminals begin to recognize the businesses that have neglected to make updates.

So, now what?

If you are a business owner, and you have been reluctant to make the necessary upgrades for EMV compliance, it’s OK!  You can accept card payments as cards are still magstripe enabled, and there will be no mandate on your business. But if you don’t already have a plan in place, now is probably a good time to get moving — even if you have not had a high occurrence of fraudulent charges in the past.

As you do this, here are a couple helpful hints:

  1. Get ready: Check out your current POS. You may have an EMV reader slot and just need to upgrade your system software and certification for compliance vs. doing a total terminal replacement.
  2. Get informed: Contact your POS provider and find out everything you need to know to be compliant and ask them for recommendations for upgrades or replacement.
  3. Get help: Check out some of the information and incentives offered by companies like American Express and MasterCard to assist in fraud prevention and upgrading your system.

For smaller businesses, especially those like my doggie daycare, it’s important that they are kept as safe as those that they care for, and complying with the standards that will protect them from fraud is one way to keep their focus where they need it the most.

 

How can we help you make change?

There are no comments yet. Be the first and leave a response!

Leave a Reply

Your email address will not be published. Required fields are marked *

What’s Your Fraud Got To Do With Me?

Skip_10206523522381354_1449400610_n (3)What the EMV Fraud Liability Shift means for SMBs.

Recently, while bringing my beloved pup Skipper to his doggie day care, (a doggie must-have given his affinity for shoes and cushions), I was informed by the owner that it was time to renew my monthly
package.

Wallet in hand, I brandished a new credit card, ready to rack up some reward points. As I handed it over, I noticed the small, metallic chip on the front of the card indicating that it had been updated with the EMV security feature.

So, what is EMV? EMV stands for Europay, MasterCard, Visa, and is the globally accepted standard for credit and debit cards that is finally making its way into U.S. payment systems. This technology offers a new level of protection for anyone in the payment card usage chain.  Thanks to microprocessor technology in that shiny, little chip, data is more secure, and validation methods deployed when the card is used make it extremely difficult to clone or skim.

I asked the owner if he had upgraded his payment system to be EMV compliant, and with a slight eye roll and subtle mutter of complaint, he confirmed that he had, but that it was not without its issues,
and cost.

As a marketer in a financial/B2B space with specific experience in fraud protection, I have been aware of the pending shift from the outdated magstripe technology—which is the black, magnetic stripe on the back of your credit card that has been rendered pretty much useless by savvy fraudsters—to the EMV or “chip” card for a long time. But while understanding the competitive landscape and messaging around fraud protection for large financial institutions, I hadn’t really come face to face with the impact of this shift for SMBs (small to medium size businesses). Until now, with Skip at my feet, paying for doggy day care.

Fraud happens.

Most of us are probably aware of data breaches in the world around us.  It’s in the headlines.  It’s in our wallets.  It’s a part of our national consciousness. In fact, according to the Chapman University Survey on American Fears, more Americans are afraid of credit card fraud and identity theft than they are of terrorism. (It also trumped spiders, clowns, and public speaking according to a 2014 Gallup Poll.)

Big business fraud that we see in headlines is, in and of itself, a big business.  When data breaches happen to the Targets and Home Depots of the world, not only are they responsible for millions upon millions of dollars to cover loss, and litigate over liability, but they are likely spending just as much to invest in technology upgrades, replace compromised cards, and work to rebuild consumer trust.

For the consumer, while the thought of data theft is a complete violation, many times the disruption to an individual is minimal, if noticed at all, as card holders are not held liable, and improved anti-fraud technology has gotten better at stopping fraud in its tracks once it’s been detected. So even with the enormity of costs in fraud recovery, large corporations and their banks will make the necessary shifts to cover a very large tab, eventually returning to business as usual. And people like me just continue in our daily routines.

For small businesses, however, loss of any kind can hit the dinner table, and recovery from fraudulent activity takes more than moving some line items.

Small business gets a bigger hit …

Adaption to the technology required to comply with EMV payments has been slow for smaller businesses.  One reason may be general lack of awareness in the U.S. as card issuers are shifting; another is likely the perceived effort and cost to upgrade payment terminals. Major fraud has been seen more frequently at the big box level, and system upgrades for smaller merchants haven’t been a priority.  Until now. This October, if you are the proprietor of a smaller business, before you can say, “Where are those Halloween decorations?”, you may be making that change after all.

As of October 1, the United States, the last of the G20 countries (a group of the world’s 20 most powerful economies) to adopt the EMV standards, will have a shift in fraud liability to parties that are not EMV compliant. This means that if a stolen or counterfeit EMV Chip enabled card is used to make a card-present purchase, a business owner would likely get hit twice if they have not upgraded their payment system. Not only would they be down any stolen merchandise, but the coverage, or “charge-back”, of the consumer’s card loss falls on them as well.

While a small business owner won’t be forced to upgrade their system, the cost to comply may be worth the peace of mind in the long run, particularly as this standard becomes more widely accepted among consumers, and before criminals begin to recognize the businesses that have neglected to make updates.

So, now what?

If you are a business owner, and you have been reluctant to make the necessary upgrades for EMV compliance, it’s OK!  You can accept card payments as cards are still magstripe enabled, and there will be no mandate on your business. But if you don’t already have a plan in place, now is probably a good time to get moving — even if you have not had a high occurrence of fraudulent charges in the past.

As you do this, here are a couple helpful hints:

  1. Get ready: Check out your current POS. You may have an EMV reader slot and just need to upgrade your system software and certification for compliance vs. doing a total terminal replacement.
  2. Get informed: Contact your POS provider and find out everything you need to know to be compliant and ask them for recommendations for upgrades or replacement.
  3. Get help: Check out some of the information and incentives offered by companies like American Express and MasterCard to assist in fraud prevention and upgrading your system.

For smaller businesses, especially those like my doggie daycare, it’s important that they are kept as safe as those that they care for, and complying with the standards that will protect them from fraud is one way to keep their focus where they need it the most.

 

How can we help you make change?

There are no comments yet. Be the first and leave a response!

Leave a Reply

Your email address will not be published. Required fields are marked *

What’s Your Fraud Got To Do With Me?

Skip_10206523522381354_1449400610_n (3)What the EMV Fraud Liability Shift means for SMBs.

Recently, while bringing my beloved pup Skipper to his doggie day care, (a doggie must-have given his affinity for shoes and cushions), I was informed by the owner that it was time to renew my monthly
package.

Wallet in hand, I brandished a new credit card, ready to rack up some reward points. As I handed it over, I noticed the small, metallic chip on the front of the card indicating that it had been updated with the EMV security feature.

So, what is EMV? EMV stands for Europay, MasterCard, Visa, and is the globally accepted standard for credit and debit cards that is finally making its way into U.S. payment systems. This technology offers a new level of protection for anyone in the payment card usage chain.  Thanks to microprocessor technology in that shiny, little chip, data is more secure, and validation methods deployed when the card is used make it extremely difficult to clone or skim.

I asked the owner if he had upgraded his payment system to be EMV compliant, and with a slight eye roll and subtle mutter of complaint, he confirmed that he had, but that it was not without its issues,
and cost.

As a marketer in a financial/B2B space with specific experience in fraud protection, I have been aware of the pending shift from the outdated magstripe technology—which is the black, magnetic stripe on the back of your credit card that has been rendered pretty much useless by savvy fraudsters—to the EMV or “chip” card for a long time. But while understanding the competitive landscape and messaging around fraud protection for large financial institutions, I hadn’t really come face to face with the impact of this shift for SMBs (small to medium size businesses). Until now, with Skip at my feet, paying for doggy day care.

Fraud happens.

Most of us are probably aware of data breaches in the world around us.  It’s in the headlines.  It’s in our wallets.  It’s a part of our national consciousness. In fact, according to the Chapman University Survey on American Fears, more Americans are afraid of credit card fraud and identity theft than they are of terrorism. (It also trumped spiders, clowns, and public speaking according to a 2014 Gallup Poll.)

Big business fraud that we see in headlines is, in and of itself, a big business.  When data breaches happen to the Targets and Home Depots of the world, not only are they responsible for millions upon millions of dollars to cover loss, and litigate over liability, but they are likely spending just as much to invest in technology upgrades, replace compromised cards, and work to rebuild consumer trust.

For the consumer, while the thought of data theft is a complete violation, many times the disruption to an individual is minimal, if noticed at all, as card holders are not held liable, and improved anti-fraud technology has gotten better at stopping fraud in its tracks once it’s been detected. So even with the enormity of costs in fraud recovery, large corporations and their banks will make the necessary shifts to cover a very large tab, eventually returning to business as usual. And people like me just continue in our daily routines.

For small businesses, however, loss of any kind can hit the dinner table, and recovery from fraudulent activity takes more than moving some line items.

Small business gets a bigger hit …

Adaption to the technology required to comply with EMV payments has been slow for smaller businesses.  One reason may be general lack of awareness in the U.S. as card issuers are shifting; another is likely the perceived effort and cost to upgrade payment terminals. Major fraud has been seen more frequently at the big box level, and system upgrades for smaller merchants haven’t been a priority.  Until now. This October, if you are the proprietor of a smaller business, before you can say, “Where are those Halloween decorations?”, you may be making that change after all.

As of October 1, the United States, the last of the G20 countries (a group of the world’s 20 most powerful economies) to adopt the EMV standards, will have a shift in fraud liability to parties that are not EMV compliant. This means that if a stolen or counterfeit EMV Chip enabled card is used to make a card-present purchase, a business owner would likely get hit twice if they have not upgraded their payment system. Not only would they be down any stolen merchandise, but the coverage, or “charge-back”, of the consumer’s card loss falls on them as well.

While a small business owner won’t be forced to upgrade their system, the cost to comply may be worth the peace of mind in the long run, particularly as this standard becomes more widely accepted among consumers, and before criminals begin to recognize the businesses that have neglected to make updates.

So, now what?

If you are a business owner, and you have been reluctant to make the necessary upgrades for EMV compliance, it’s OK!  You can accept card payments as cards are still magstripe enabled, and there will be no mandate on your business. But if you don’t already have a plan in place, now is probably a good time to get moving — even if you have not had a high occurrence of fraudulent charges in the past.

As you do this, here are a couple helpful hints:

  1. Get ready: Check out your current POS. You may have an EMV reader slot and just need to upgrade your system software and certification for compliance vs. doing a total terminal replacement.
  2. Get informed: Contact your POS provider and find out everything you need to know to be compliant and ask them for recommendations for upgrades or replacement.
  3. Get help: Check out some of the information and incentives offered by companies like American Express and MasterCard to assist in fraud prevention and upgrading your system.

For smaller businesses, especially those like my doggie daycare, it’s important that they are kept as safe as those that they care for, and complying with the standards that will protect them from fraud is one way to keep their focus where they need it the most.

 

How can we help you make change?

There are no comments yet. Be the first and leave a response!

Leave a Reply

Your email address will not be published. Required fields are marked *