As consumers and businesses have begun receiving new credit and debit cards with shiny embedded microchips (known as EMV technology), many are unaware of the liability shift that occurred in 2015. As of October 2015, merchants that are not certified to accept EMV card transactions may be responsible for certain fraudulent charges, a change from standards that previously existed where the liability rested solely with the card issuer. Estimates indicate 94 percent of magnetic-only credit cards will be replaced by the end of 2016. As a result, businesses that accept credit cards face a dramatically different landscape compared to just a few short months ago.
At the same time, fraudulent credit card activity is expected to increase in the near-term as criminals work their way through stockpiled stolen information and look to exploit weakest-link businesses, a pattern witnessed in other nations as EMV technology was implemented. Taken together - a shifting of liability and a short-term increase in fraudulent activity - make EMV certification an important tool in protecting your business.
UHY Advisors is a Qualified Security Assessor (QSA) organization, equipped to assist your organization with payment card technology. For matters with PCI (payment card industry) compliance or to discuss other possible IT risks, contact your local UHY LLP professional, or visit us on the web at www.uhy-us.com