EMV Chip Transition for Business Owners

EMV chip cards

EMV Chip transition for business owners is something you should be aware of if you accept credit cards. You may have heard that the United States is transitioning to full adoption of EMV chip-enable cards to reduce credit card fraud. This means that there will be changes to the way payment are made and accepted since the liability shift is going into effect on October 1, 2015.


EMV is the global standard for smart card payments and acceptance devices, named after the developers: Europay, MasterCard and Visa. EMV microchip-enabled cards provide stronger security another capabilities not possible with traditional magnetic stripe cards.

An EMV chip enabled card has a square microchip on the front of the card and is something you may already have in your wallet. A special card reader is required to read these EMV chips, but you can still swipe the cards through the same magnetic stripe readers you’re using today.

To encourage businesses to adopt the more secure technology of EMV chip cards, a liability shift is going in to effect on October 1, 2015. Today, if businesses swipe a counterfeit or stolen card, the bank assumes the loss. Starting in October, if the business swipe a counterfeit or stolen EMV chip card using a magnetic stripe reader, they could be liable for that charge.


If there is any concern around fraudulent credit card transactions, your clients may want to get an EMV reader. An EMV device reads the microchip embedded in the card and authenticates that the credit card is valid. This reduces their liability for fraudulent transactions.

Some questions to consider if you should transition to the EMV reader is (1) do you sell to customers you don’t know? (2) Do you sell expensive items? (3) Are your transaction amounts large? (4) If you accept funds from a counterfeit or stolen credit card would it have a impact on your businesses for lost of funds?

The transition to EMV cards and EMV technology will not happen overnight. But know October 1, 2015 the liability is on you so check with your company you lease equipment from or the card reader provider you use about when they plan to change their equipment so you can update yours. Be pro active about switching to a EMV chip reader it will be better for you and your customers.