Updated on November 22, 2021
In a Wells Fargo/Small Business Index Gallup poll recently taken shows many small business owners aren’t aware of the new set of liability rules set to take place this fall starting in October, 2015. These rules state that if businesses don’t upgrade to the new EMV “Chip Card” terminals they will be held liable for fraud and or security breaches. If you’re not familiar with this new regulation click here for complete explanation.
When small business owners were asked if they thought the liability shift will provide better fraud protection, the answers were split with 42% saying they thought it would greatly improve protection and 42% didn’t believe it would improve protection much at all.
Some merchants or small biz owners are upset because of the cost involved with purchasing yet another new system for accepting credit cards. The average cost for the new chip compliant terminals seem to range around $300 – $400. Most processors are not offering to upgrade the terminals for free. When searching for the best deals we found one of our top processors offering a Free “EMV” terminal upgrade. To view this special money saving offer go to CDGcommerce page. You’ll pay a $79 annual fee for the terminal in case it breaks down but you won’t pay a PCI compliance fee, all with no contract, no cancel fees and you’ll get interchange-plus pricing.
An interesting statistic is since 2007 credit card fraud increased by 70% in the U.S. and with EMV implementation in the U.K. decreased by 80%.
E-commerce fraud set to increase after EMV liability switch
The new liability shift will create problems for hacker and fraudsters when trying to hack POS systems in retail stores so the most logical place for them to target will be online retail accounts. Banks, processors and financial institutions are gearing up for another cyber nightmare as fraudsters prepare to attack online stores. This has already been proven when Europe introduced the EMV cards. Online fraud immediately increased 21% and continues to be an evident problem.
It just makes sense for the cybercriminals to exploit the next weakest link and because in-store transactions will be more secure, so the next best thing for them is to attack the online stores. They want to be able to use previously stolen credit cards and personal data such as usernames and passwords compromised in previous data breaches where security holes still exist for E-commerce and card-not-present users.
If you have an E-commerce store we invite you to speak with a processor that is making significant advances in this area of expertise. BluePay, a merchant provider that recently received the MasterCard “Data Integrity Compliance Award” will help you make the adjustments needed in order to have better security for your E-commerce site and or store.