Soon you will see an influx of cards with a smart chip instead of, or along with, a traditional magnetic strip. The smart chip cards are more secure than traditional magnetic strips and they will protect customer card information with improved data encryption. In order to accept cards with smart chips, you will need to upgrade your credit card terminal to one that has smart chip reading capabilities.
Here’s what you NEED to know:
- Changes are only relevant to retailers (businesses that accept cards face-to-face).
- Retailers will soon be able to accept Smart Cards with EMV chips (like the card pictured above).
- Technology will be finalized in April, 2013.
- You have until October, 2015 to make the change.
- You can upgrade now if you are ready to embrace this change immediately.
- Upgrading gives you a special defense against fraudulent charge-backs that was never before available.