Credit card fraud may be an afterthought for many businesses including salons and spas. However with the recent EMV liability shift, it should be a real concern as they will lose revenue and clients’ trust.
EMV transactions are unique in that payments are processed using microchips which are embedded into credit cards and debit cards. While EMV is relatively new in the United States, the technology has actually been around for many years. In countries where EMV adoption is widespread, there has been a dramatic reduction in fraud. Since Canada first introduced EMV in 2008, credit card fraud has fallen by 76% and debit card fraud by 92% according to the Canadian Bankers Association.
Credit Card Fraud on the Rise
While the introduction of EMV is intended to reduce credit card fraud, there is actually a surge in fraud this year and this growth is expected to continue for a few more years, according to CNBC. The reason? Criminals are trying to cash in now with stolen credit card data from the traditional cards with the magnetic strip. Cards without the smart chips and payment terminals that are not EMV-enabled provide opportunities for hackers to cheat the system.
Protecting Your Business
The National Retail Foundation expects 86% of US businesses will have EMV implemented by the end of 2016. Retailers, including salons and spas, who fail to adopt EMV terminals will be increasingly targeted as more businesses switch to EMV and fewer remain with traditional payment terminals. With the liability shift, these businesses are at risk of losing significant revenue.
By implementing an EMV terminal, you will not be on the hook even if a non-EMV card is used. While new salon POS hardware can be pricey, having a couple chargebacks will already offset that cost. When you process with Insight Software, purchasing an EMV PIN pad can be as low as $259* or renting an EMV multimedia terminal with signature capture costs only $10/month*. Plus, Insight is PCI and PA-DSS compliant to keep transaction and cardholder as secure as possible. Protect your business and strengthen client trust!
Start processing through Insight Software today! Give us a call at 1-888-919-5841 to learn about our Credit Card Integration specials.
*Hardware prices mentioned are for US clients. Canadian clients may contact us directly for details and pricing.