3 Tips to a Smooth EMV Transition for ATMsGateway Guru
Fraud cost US retailers $32 billion dollars in 2014, up from $23 just a year before. Payment companies and merchants have implemented various policies to address the growing fraud problem, most prominently the major liability shift for merchants last October. This year, on October 21, 2016, ATMs were added to the mix. For now, the EMV requirement at ATM includes only MasterCard, but next year Visa will join as well.
Merchants that upgrade their ATMs to EMV will not bear the liability for fraudulent transactions. Despite the costs and learning curve associated with EMV upgrades, it’s the smart move for merchants due to the rising rate of fraud. According to a FICO study, the number of compromised ATMs in the US rose 546% between 2014 and 2015!
There are several things to keep in mind to ensure a smooth EMV transition:
It’s an Investment
The expense of upgrading to EMV can be steep. It typically runs between $300 and $3,000 to upgrade. Once it is upgraded, the machine will need to be cleaned regularly at an additional cost.
However, the initial investment is worth it for merchants since fraud costs much more.
Be Aware of Changes
Merchants had to educate customers to dip their cards instead of swiping at most retailers, and now they will have to do the same at ATMs as well. Although EMV-compliant ATMs will still be able to read mag-stripe cards, they are will redirect EMV cards to the chip reader instead.
Consumers will also need to adjust to slightly different menu choices due to the EMV migration. It is important to compare the differences between the old and new prompts and inform merchants so they are able to assist customers and answer questions as needed.
Merchants and consumers will experience a bit of a learning curve on the new machines, but it’s important to remember that it’s in everyone’s best interests. Data security is of prime concern, and EMV has been proven to reduce fraud.
Cardknox works with ISVs, VARs, and merchants to develop creative solutions for effective EMV integration. We offer a developer-friendly SDK that can implement EMV in just a few hours. We believe that payments security should be simple and efficient for everyone involved.
Speak to a live rep today to have your EMV questions answered or to get started.