I've had a few businesses and organizations mention to me that they plan to do nothing related to the EMV Liability Shift Date coming up on October 1st, 2015 in the US in relation on how to accept and authorize chip based credit and debit cards for payment.
Their mindset is that it is not worth investing money in new hardware and software to accept the new chip cards as the businesses average transaction is only around $30.00. Thus, it would be OK to lose $30.00 in sales revenue via a fraudulent transaction versus spending money on hardware and software upgrades.
These folks are forgetting the following:
- Cost of a chargeback (read your merchant services agreement but just about all merchant services companies charge you a chargeback fee for fraudulent transactions).
- Cost of bad press - any sort of fraud will likely be picked up by the local media or even shared via social media and review sites like Yelp. Bad press + bad reputation = more lost revenue.
- Easy target. If word gets out that your business or organization is not using EMV/Chip Card hardware, then you could become a target for future fraudulent transactions.
- Loss of ability to accept any debit and credit cards as payment. I have seen this happen - too much fraud and no one will offer you merchant services. You will become a cash only business or have to use Square or similar more expensive options.