With the holidays coming into full swing, people are buying last minute gifts and running last minute errands. Small-to-medium sized businesses are sure to see an increase in their sales over the next month. However, it’s important that business owners prepare their businesses for the upcoming rush and know what to expect. More sales are a good thing, but it they also mean an increase in fraud. The holiday season has the highest number of fraudulent cards run out of any time of the year, with fraud rates reaching 200 percent of the average rate on Christmas Eve and Christmas Day alone. With this massive increase in fraud during the holidays, it is more important than ever to ensure your business is protected with EMV technology.
EMV technology has brought significantly increased security to the U.S. and its merchants. During the gift-giving season, this technology will prove invaluable to merchants. EMV cards have chips that are “dipped” into readers on terminals rather than swiped. The chips utilize end-to-end encryption and unique codes to process each and every transaction. This means that it is virtually impossible for that information to be stolen and reused for future fraudulent transactions. EMV also requires the use of a personal pin code or signature to verify the transaction, adding another layer of security to the process. This increase in security means drastically reduced fraudulent card transactions, which is more necessary now than ever.
In the past, having a fraudulent card run at your business was by no means the end of the world for your business. However, due to the EMV Liability Shift, having a fraudulent card run could bring your business to its knees. If a business has not adopted EMV technology, the business is the one held financially liable for the fraudulent transaction, not the banks. For many small businesses, facing the liability of a fraudulent card transaction forces them to shut down. According to a study conducted by The National Cyber Security Alliance, 60 percent of small businesses close within six months of experiencing a data breach.
A recent Fattmerchant survey found that 72 percent of small business owners have not adopted EMV-compliant technology. Small businesses made up 93 percent of the survey participants, showing that they are particularly unprepared for the upcoming holidays. With a drastic increase in fraud expected over the next few weeks, the number of merchants not prepared with EMV-compliant equipment is extremely worrisome. This number indicates that the majority of small businesses are completely vulnerable to the 200 percent increase in fraud expected over the holidays. For many of these merchants, a fraudulent card will be run and they will have anything but a happy holiday.
The good news is that there is still time for merchants to secure EMV-compliant technology so they can confidently take on the rest of their holiday sales. We get it, you’re busy and you don’t have the time to focus on your credit card processing, but the reality is now is the exact time you should ensure that you are protected. A merchant services provider should make transitioning quick and painless, but beware of Scrooges trying to take advantage of you. The right merchant services provider will offer you free EMV equipment delivered right to your door in a matter of days. When it comes to fraud, the worst is yet to come. Don’t let it surprise you and ruin your holidays. Using EMV technology will ensure that both you and your customers enjoy a safe and happy holiday season.
Fattmerchant is a subscription-based merchant services provider, offering unlimited credit card processing at direct cost – 0% markups, no ancillary fees, and no contract. We offer free equipment with each plan, online reporting analytics, and personalized customer support. At Fattmerchant, our bottom line is making your bottom line bigger.