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EMV Financial Impacts?

How will the EMV regulations effective 10/15/15 impact your business? We have credit card swipe machines at every workstation and with multiple locations; I'm looking at a significant expenditure.

Answers

Mohammad Ali, EMBA, CTP
Title: Revenue Analyst
Company: Energy & Utilities
LinkedIn Profile
(Revenue Analyst, Energy & Utilities) |

EMV stands for Europay, MasterCard and Visa, a global standard for inter-operation of integrated circuit cards (IC cards or "chip cards") and IC card capable point of sale (POS) terminals and automated teller machines (ATMs), for authenticating credit and debit card transactions.

The main driver behind the EMV migration is card-related financial fraud. Despite the best efforts of global law enforcement agencies, global losses have risen steadily, increasing pressure to find a global solution. Annual costs of card fraud in the U.S. alone are estimated at $8.6 billion per year. Experts believe that figure will rise to $10 billion or higher by 2015, especially if the U.S. does not make significant progress with chip card adoption. - See more at: http://www.paymentsleader.com/will-retailers-be-ready-for-emv-by-oct-2015/#sthash.6VMYtDjz.dpuf

Kevin Bailey
Title: President
Company: Logical Processing Solutions
(President, Logical Processing Solutions) |

The financial impact may not be that great. Your current merchant service processor should be assisting you in evaluating the system up grades you need to make. The cost impact will depend on if a merchant processes their transactions through a POS System or stand alone terminals. Also this might be a good time to review your overall processing fees and bring in a few competing companies to make sure you are getting the best overall pricing. If you end up getting your monthly fees reduced this might cover a good portion of the one time upgrade cost your faced with.

Topic Expert
Christie Jahn
Title: CFO
Company: Prime Investments & Development
(CFO, Prime Investments & Development) |

It's the equipment that is required to read the chip that we need. We have the basic credit card swipe; they aren't designed to read the new credit cards.

Dmitry Faybysh
Title: CEO
Company: Bankcard Analytics
(CEO, Bankcard Analytics) |

Yea, you will need equipment that can read a smart cards. Its basically a slot inside the terminal that you stick the credit card into. Let me know if you need suggestions for the equipment. We work with many vendors and at various price points.

If you have a POS, you should be able to get a terminal to plug into the POS and not have to replace the entire POS.

Although OCT 2015 is definitely the deadline and I don't think this deadline is moving this time (as it has for many years), not everyone will be ready with EMV. We will probably have a tail of 2 to 3 years to get everyone compliant. The large banks have already been issuing credit cards with the chips embedded. The mid-size and smaller banks have said that they will not be ready by 10/2015 with new emv cards. Same with merchants...The risk will fall with the person who has the least security in place. It will be important for the merchants to get their equipment compliant.

The real issue with the EMV and new terminals is that fraud is like a large balloon and once you sit on one side of the balloon and protect yourself (ie emv terminals), it moves to a different area. The industry is suggesting that the next area we need to be concerned with is e-commerce and online fraud. If you have an online business, you should review your security and fraud prevention in that area as well.

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