If you’re an online merchant, you should be paying close attention to the new EMV chip card technology. SEO companies are warning their clients that after Oct. 1, 2015, it’s expected that fraudulent charges will soar. So will this have an impact on your online sales? Very likely.
What in the World is EMV Technology?
A lot of online merchants are unfamiliar with the new EMV technology, so don’t feel bad if this is your first time hearing about it. EMV is an acronym for Europay, MasterCard and Visa. It’s a chip that will be used to replace the magnetic strip that we have grown accustomed to on the back of our credit and debit cards. You may have already started seeing these cards, which are already being issued by banks. Since most stores aren’t ready for this technology, the cards still have the magnetic strip. However, there was a mandate that required all POS facilities to install card readers that can scan these chips by the Oct. 1, 2015 deadline.
This means that if your business doesn’t follow through with the upgrade and fraudulent charges occur within your store, you will be responsible for the charges, not the bank. So expect a lot of merchants to be switching over.
What Makes EMV Chips Different
There’s obviously something very different about these EMV chips. Their sole purpose is to prevent fraud, but how do they do this? Magnetic strips contain static information, which can be copied and reused infinitely. This is why it’s so easy to commit credit card fraud. However, the EMV chips have encrypted codes that change each time you use it. So no series of data can be reused, which makes it impossible to duplicate the cards.
How this Will Effect Your Online Store
The problem with all this is that online businesses use the Internet for transactions, not a card reader. So there’s no way to make use of this chip technology via the Web. In other words, there’s no way to prevent fraud. Since thieves can’t commit credit card fraud like they were once able to, they are going to switch to online sales.
We have already started seeing this take place in Europe, where EMV chip cards have already been introduced. During the first year, Europe saw online fraudulent charges skyrocket. So it’s expected that the same will occur in the U.S.
Tips for the Shift
If this is the case, consumers are going to become more aware of fraud and will only want to do business with Web sites that have increased security measures. So it’s a good idea to beef up your security to decrease chances of fraudulent activities occurring through your portal. By taking this proactive approach, it will help to gain trust from your customers and prospects. SEO companies are already seeing online merchants taking the initiative to upgrade their portals before crime hits.
As an online vendor your top priority should always be the security of your transactions. Don’t take these precautions lightly or you could end up picking up the tab for fraud or worse, losing your clientele! If you’re willing to hire an SEO company to help bring in traffic, do whatever it takes to protect them!