What Readers Think of EMV Technology

Jennifer Polanz

Recently we’ve run stories in Green Profit and through Ellen’s buZZ! e-newsletter about the new EMV chip technology that credit card companies are using to prevent fraudulent activity. Credit card companies are issuing new cards with chips in them as opposed to magnetic stripes. The stripe contained all static credit information, so once the data was stolen, it could be used over and over again. With the new chip, each transaction is unique, so if the card is stolen, it can only be used once in person. As of October 1, retailers who do not adopt new chip readers can be held responsible for any fraudulent activity that happens as a result of card data being stolen during a transaction at their store. The first wave of new cards will contain chips and magnetic stripes to give retailers time to adjust. Readers recently sounded off about the new regulations; here are some of their thoughts:

“Businesses have always been ‘on the hook’ for fraudulent transactions. That is nothing new. The new EMV chip technology only works/protects a customer who physically comes into the store and pays for items at the register. It does not prevent stolen cards (even with EMV chips) from being used online or by telephone to purchase items since this only [the] requires card number, expiration date and security code. Yes, Europe and Canada have been using EMV chip credit cards for years, but not everyone has an EMV card. For instance, Canada has been using this technology for five years and banks there still issue credit cards with the usual magnetic strip. So, I’m not in any hurry to replace equipment. Besides, it’s not mandatory, only highly suggested to avoid chargebacks from your credit card processor. And if you rarely receive any chargebacks from in-store purchases, your company is at a very low risk.”—Karen Wedel, Wedel’s Garden Center

“I agree with Karen. We are not going to go out and buy new equipment for this change. In almost everything you read about this it makes it sound like it is mandatory, but after looking into it further and meeting with our credit card processor rep, we were assured it is not mandatory. I don’t think we have had a chargeback on a credit card in over a year, so we don’t feel the investment is worth is at this time. Again, as Karen said, we were held accountable for fraudulent charges anyway, so where is the upside for the retailer? Only upside I see is for the manufacturers with new equipment.”—Kris Shepard, Caan Floral

“We have an EMV reading machine and have used it without any problems. It may take about 10 seconds for the card to read and reply. We are hard wired to the Internet and it is rare that it ever goes down. Wireless is another matter. Our machine can still read magnetic stripes, so if they don’t have a new card it still works. Most of our sales except for poinsettias and bedding plants are online, so the chip is not important. During on-site sales, we will use the chipped cards if they are available.”—Max Thompson

“My bank offered a free new machine for a limited time (first time ever). I called that day and am using it. Works good.”—Judy Mitchell

“I think the point that many are missing with EMV is that if a credit card is hacked because of a breach in your store, and you don’t have EMV chip readers, you are on the hook for all the fraudulent sales that come from that breach. Not just the one sale from your store, but ALL the fraudulent sales from that breach. The bank won’t cover any of the related fraudulent sales. You could potentially be on the hook for tens of thousands of dollars in sales. If you have more than one card hacked, your business could be bankrupted. Don’t think for a minute that hackers won’t shift their hunt to small businesses that haven’t done due diligence.”—Timothy Lamprey  GP