With the EMV Chargeback Liability Shift Regulations in full swing, many US merchants are still scrambling to figure out exactly how the introduction of EMV will affect their POS operations. Chargebacks have become an expensive problem for both the merchants and credit card providers, and these regulations represent an effort to reduce fraud and save money across the board. However, the actual impact of the changes depends upon each retailer’s individual situation, and it may not be fruitful for every business to upgrade immediately to an EMV compatible POS system. Our friends at Solupay outlined at few ways EMV will impact your POS:
It will take time before every consumer has an EMV chip card
Issuing EMV chip cards to every cardholder in America is an expensive proposition for banks, so many may hold off on doing so until the customer demands it. For this reason, and because many consumers don’t want to go through the hassle of changing cards before expiration, merchants may still be dealing with customers using the old style of cards for years to come. In this case, the EMV transition may not have an immediate impact on your chargeback activity on a widespread basis.
Upgrading will require upfront costs
Upgrading to a new POS system is going to require an investment, and the extent of that investment depends greatly on how old your current system is and what your POS needs are going forward. Additionally, many merchants who have already adopted EMV compliant POS systems are reporting longer transaction times as both employees and customers deal with the added confusion of trying to navigate a new system. Although the system is designed to provide long-term benefits to businesses, it’s clear that most organizations will experience some growing pains in the initial stages.
Merchants with a large percentage of transactions with the card present may see reduced chargeback activity
Merchants who conduct most of their transactions face-to-face with the customer, and who deal in products that are most susceptible to fraud (electronics, clothing, etc.), are likely to see the most immediate and tangible effects of the EMV regulations. For these retailers, it will make it much more difficult for perpetrators to commit fraud by initiating chargebacks, ideally resulting in savings of cash and resources required to fight chargebacks. If you are in this situation, it may make the most sense for you to shoulder the upfront costs and integration issues immediately, so that you are protected by the EMV regulations as soon as possible.
Businesses with high volumes of online transactions may be minimally affected
Conversely, merchants who conduct most of their business via the internet, phone, or mail order, won’t likely see the benefits of an EMV-compliant system, as it requires that the chip be inserted into the reader itself. In this case, it may make more sense for you to wait until your next planned POS upgrade, wherein you can roll an EMV compliant transition into an upgrade you’ve already budgeted for.
Great Lakes Offers POS Equipment Repair
Great Lakes Computer ensures peace of mind with POS Systems uptime through our specialized on-site POS repair services. We fix the problem the first-time and avoid costly interruptions to your business. We carry on-site spares to secure a quick and cost-effective response to your POS Systems repair needs. Our POS Depot Repair Services will provide you with a substitute POS System to keep you going while your POS equipment undergoes repair.