If you process credit cards in your winery or tasting room, you’re probably starting to hear about new payment technology and the upcoming EMV Liability shift. Also called “Chip-and-Signature,” EMV is quickly becoming the global standard for secure credit card payments as these cards contain an embedded chip that protects cardholder information from becoming vulnerable to fraud.
As credit card companies push US merchants to adopt EMV technology, you can expect to see a few changes that affect your business. The good news is there’s no need to panic as long as you know the facts so you can make the best decision for your business.
What is EMV?
EMV is a chip technology used globally in place of magnetic stripe. EMV chip technology helps reduce card fraud in a face-to-face, card-present environment by creating a unique transaction code each time it is used. It enables safer and smarter transactions across contact and contactless channels. EMV was conceived by EuroPay, MasterCard and Visa (EMV). This group includes representatives from all major world brands (American Express, Discover, JCB, UnionPay) and comprises the governing body referred to as EMVCo.
Why the rush?
EMV has been the credit card processing standard across most of Europe for years. EMV is a much more secure method of payment processing, so thieves began to target magnetic stripe cards in the US, which hasn’t switched to EMV. You’ve likely read about a series of high-profile card data breaches in the news, which prompted the card companies to move forward with EMV.
How is your business affected?
By the end of 2015, 70% of credit cards in the US are expected to have unique identifier chips. In October of 2015, the liability for counterfeit card transactions will move from merchants (that's you!) back to the credit card companies if a counterfeit transaction is processed on an EMV device. Simply put, by adopting EMV your winery can pass responsibility for counterfeit EMV transactions that occur in your business on to the credit card companies.
Note: This liability shift is a NOT a US law, but a credit card network mandate and affects card present transactions only. eCommerce, online or phone orders are not included at this time.
In addition to the security benefits of EMV, most EMV devices support NFC transactions like Apple Pay and Google Wallets. This provides your customers with another, more secure payment option.
Is EMV right for your business?
It’s important to remember that the liability shift is not a law and although it is recommended, you are not required to switch to EMV. While the official deadline for the liability shift is October 1st, there is no need to panic as long as you weigh your options and put a plan in place.
When considering whether EMV is right for your business, you should take the total cost of implementing EMV devices into consideration. Depending on your vendor, most devices range from $200-$900 or a low monthly rental fee. Then, you’ll want to consider your current fraud chargeback liability to determine if moving to EMV makes sense in light of the potential impact to your business.
Credit Card Security and PCI Compliance
Securing your customer credit data is one of the most important steps you need to take to protect your business. In addition to tasting room pos security, you should also review the security of your ecommerce or club software. Taking advantage of today’s modern processing technology, often referred to as tokenization, enables you to keep customer card data stored in a secure “payment vault” with your processor instead of within your system. If your credit card data is not currently tokenized, you could be at risk of a credit card breach. The safest option is to look for a technology partner that meets the latest standards in PCI Compliance and offers tokenization.
We've Got you Covered!
Credit card security is one of the most important piece of your winery technology. With recent security breaches hitting the wine industry, it's more important to protect your data than ever before - and to partner with an expert.
Granbury Solutions has partnered with the industry’s leading payment processors to provide you with the most secure, modern winery credit card processing options. Granbury has invested time and resources to ensure that we have solutions in place to keep your business running as usual and we’ll have these new devices available for you in the coming months.
So what should you do in the meantime?
You don’t have to react immediately, but you should start planning today. If you’re not sure if your POS is up-to-date, consult your Granbury Wine Solutions Representative for a quick assessment to determine if your system is ready for the newest payment technology.
Be ready for EMV plus get modern, affordable processing with Free Decline Minimizer service when you switch!