New Credit Card Technology Brings New Potential Losses
Technology is changing quickly when it comes to data protection.
Euro pay, MasterCard Visa (EMV), is the new technology for businesses to use at their Point of Sale to prevent data breaches.
So why is this important for businesses?
This is the new evolution of building out a more secure and innovative payment systems. A chip embedded into newly reissued credit cards to make payments more secure is technology that was widely being used globally and is now in the US.
Here are the three things you need to know as entrepreneur or business owner:
1. Consumers love new technology! Especially if it means keeping their information more secure or leads to a more efficient process. In the world of weekly data breaches, consumers want to know businesses are staying ahead of the curve and are current on technology and security trends.
2. As a small business, you will need to move to this new technology for preventative measures. EMV as a form of prevention results in less fraud, less use of contact cards, will stop large amounts of data breaches, and if someone steals large amounts of data it will not be possible to replicate it onto a fraudulent card to be used at another location.
3. The guidelines of the payment system are changing and you will protect yourself from charges. As of October 1st, businesses will be liable for all data breaches if the business has not converted to the new EMV technology. This means if a small business owner experiences a data breach after October 1st, AND has not transitioned their payment system to include chip recognition technology, or EMV, credit card companies (Europay, MasterCard, Visa, and American Express) will not incur or insure that loss. That loss will be the responsibility or the business owner for not using the highest level of technology available to have the data breach prevented.
Even with the chips, cards still have a mag stripe because this change will not happen over night with businesses, even though the change in liability from credit card companies to will happen starting October 1st.
Businesses may need new card processor if one has not been replaced in the last few years. The best way to know is to contact your provider.
Moving to this new platform helps banks take advantage of this new technology via:
1. Customer Experience – It’s a great way into increase trust with consumers.
2. Brand Message – It’s clear companies are taking strides to reduce security risks.
3. It’s Easy – The banks are doing the work of replacing all the cards for their hundreds of millions of users. Business owners, simply need to upgrade their technology and consumers just need to validate this when it happens.
Stay tuned for part two of.. Where we will discuss how the EMV technology is more secure and which industry is the most vulnerable!
Jessica Robinson is Founder & CEO of PurePoint International, a firm disrupting the security market by providing affordable outsourced Chief Security Officer consulting services for startups, international non-profits, and mid-size commercial businesses. She focuses on physical, cyber security, risk management and business continuity. Learn more at: www.the-PurePoint.com.