Since October 2015, merchant banks have taken the necessary steps to prevent fraud by issuing chip and pin cards to their customers. By putting these smart cards in consumers’ wallets, banks are shifting the liability of fraud from them to you, the merchant. These smart payment cards and the terminals that accept them are the new technical standard for card payment, and are often referred to as EMV.

1. Are You Compliant?
FINANCIAL FITNESS FEBRUARY 2016
Reprinted by permission of the St. Louis Small Business Monthly
S
ince October 2015, merchant banks have
taken the necessary steps to prevent
fraud by issuing chip and pin cards to
their customers. By putting these smart cards
in consumers’ wallets, banks are shifting
the liability of fraud from them to you, the
merchant. These smart payment cards and
the terminals that accept them are the new
technical standard for card payment, and are
often referred to as EMV.
Many organizations have updated their
technology to accommodate this shift, but
60% of point of sale (POS) terminals in the
U.S. still need an upgrade to accept EMV
technology, according to paymentsource.
com. While some organizations are waiting to
invest in the necessary technology, they might
be costing themselves more in the long run.
If you are one of the many organizations
holding out on EMV implementation, here are
a few things you need to know:
• Size doesn’t matter. If any customer uses
a credit or debit card to pay for your goods
or services directly, then the Payment Card
Industry (PCI) Data Security Standards (DSS)
apply to you.
• If you don’t pay now, you’ll pay later. Some
businesses might not be able to afford the
update to accept the smart cards, but if you’re
found to be out of compliance, you may be
subject to some hefty fines.
• The risk is greater than the reward. If you
do not implement the appropriate technology
and you are the victim of a data breach or
fraudulent charges, not only will you face
more fines, but you are required to report the
breach, which can hurt future business.
Bottom line - if you haven’t made the shift to
accept EMV payments, you could be hurting
your business financially in the long run. If
you have any questions about the compliance
requirements, contact your advisor. 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