Since October 2015, the burden of fraud liability has switched from credit card issuers to merchants if they aren’t capable of processing EMV chip card transactions. But there is still confusion among restaurant owners over what EMV means and why it’s important to their businesses.
Europay, Mastercard, and Visa (EMV) are the three companies that developed the chip card to prevent card fraud at the point of sale. It is expected that 100% of all U.S. payment cards will incorporate chip technology by the end of 2018.
No restaurant owner wants to deal with credit charge backs due to fraud, so you may be considering an investment in a restaurant EMV solution to safeguard your profit. Here are three must-know EMV facts to consider to help you make your decision.
Fact: Your restaurant will be protected from card fraud liability.
Since a restaurant EMV system uses chip cards that create unique transaction codes and most systems use a two-factor authentication process, a fraudulent transaction is virtually impossible. If your payment system is EMV-compliant and someone uses a stolen chip card, you will not be held responsible for chargebacks. On the flipside, if you still have only mag stripe card readers, then any fraudulent payment card charges that could have been stopped with EMV technology are your responsibility.
Fact: Large cities and tourist locations are more at risk.
Running a restaurant in these types of locales can be quite profitable, but crime rates tend to be higher and more prone to credit card fraud. This leaves your business open to increased losses if you aren’t equipped to accept EMV payments.
Fact: Bars experience more chargebacks than other restaurants.
Are you an owner of a restaurant/bar or nightclub serving alcohol? This type of business is an attractive target for payment card fraud because a stolen card can be used to ring up large tabs. The most effective way to protect your business is to upgrade to EMV technology.
Incorporating a restaurant EMV solution has many benefits that protect your business and prevents having to deal with chargebacks. It also demonstrates to your customers that you are committed to using the latest security technology to help protect their accounts. Upgrade to EMV technology and stop spending time dealing with card fraud and chargebacks. Instead, you can do what really matters to you: Focus on your business.