With the shift to EMV chip technology, the credit card processing news has been awash with details of the latest payment system technology. The directive by Credit Card companies warning that if merchants had not made the switch to EMV capable systems by October 1, 2015, they would be liable for any fraud that occurred, as a result, has plagued merchants who are yet to make the change. This directive left merchants scrambling as trying to either comply or take the risk of shouldering the burden of credit card fraud. Since accepting cash only is out of the question due the low volume of sales, merchants have been forced to use credit card processors to smooth the way in transitioning to EMV. Else, to perform a cost-benefit analysis in cases where the merchant has been unable to comply due to financial constraints. However, the latter has been rather unsuccessful because of lack of credit card fraud reports that are crucial in performing an analysis.
Most credit card processor agrees that merchants who do not make the move to EMV are more likely to attract fraudsters and should the merchant fall prey to fraud, they face millions in liability. Due to the expected decrease in card present fraud and anticipation in an increase in card not present fraud, the credit card processing news have also been dominated by news of online fraud preventative measures. As a merchant, choosing the best credit card processor is imperative in securing your business and giving customers a great user experience in their transactions. What defines a great credit card processor? The card processing company should be able to offer you customized solutions targeted specifically at your small, medium or large business’s needs. It should give you leeway in deciding how to accept credit card, fit your budget’s requirements and also provide support and fraud preventative measures and systems in case you decide to take your business online. This will enable you to gain from your credit card processor and learn how to protect your business from online and new identity fraud expected to see a rise. New identity fraud refers to fraud where the fraudster creates a fake account online by using real information about a customer.
Apart from informative news, the credit card processing industry has also experienced controversies. The latest bulls to lock horns are Walmart and Visa. Walmart filed a suit accusing Visa of requiring the retailer to accept signature verification rather than PIN. According to USA Today, the retailer says that the method is not only insecure but is also advocated by Visa as a way of making more money in its payment processing procedures. While chip-and-pin exists and offer more security, it is possible to verify through signatures and swiping in cases where a retailer does not have an EMV capable payment processing system.