Chip and Pin and Your Small Business discusses the importance of small businesses updating their point-of-sale systems to accept EMV chip cards. EMV chip cards store data on embedded microchips instead of magnetic strips, making them more secure against fraud. Credit card companies are implementing liability shifts that will hold businesses responsible for fraudulent charges if they don't adopt EMV processing technology by October 2015. Updating point-of-sale systems to accept EMV payments will help businesses remain secure, compliant with payment regulations, and reduce the risk of fraud.

1. Chip and Pin and Your Small Business
FINANCIAL FITNESS OCTOBER 2015
Reprinted by permission of the St. Louis Small Business Monthly
T
hanks to advancements in technology,
it has become increasingly simple and
profitable for businesses of all sizes to
accept and process credit cards. However, as
data security breaches remain a constant fear for
many merchants, it’s important that you remain
compliant with the various policies put in place for
increased security.
One way credit card companies are fighting back
against fraud is by upgrading their technology.
Smart cards (or chip-and-pin cards, chip-and-
signature cards or EMV, which stands for
developers Europay, MasterCard and Visa) have
embedded microchips that store data rather than
the magnetic strips on current credit cards.
Since merchant banks are taking the necessary
steps to prevent fraud on their end, the liability is
now shifting from them to you. This means that
if you don’t adopt EMV processing technology in
the near future, you could be held responsible for
fraudulent charges. American Express, Discover,
MasterCard and Visa are implementing a liability
shift for point-of-sale terminals as early as
October 2015.
By updating your point-of-sale (POS) system
to accept EMV payments, you are taking the
necessary steps to ensure your business will
support the latest payment innovations and
reduce risk.
For you to remain secure and compliant, updated
POS devices should be properly integrated into
your system. A PCI compliance audit or review
will help ensure the EMV technology has been
implemented securely. If you have any questions
about these compliance requirements, contact
your adviser. n
Karen Stern (314-983-1204 or kstern@
bswllc.com) is partner in charge of BSW
Small Business Services, which provides
small business tax and accounting services.
BY KAREN STERN