SARSOTA, Fla. – An article this week in Point of Sale News reported the likely increase in incidents of counterfeit or stolen credit cards being used at small business, in light of next month’s widespread EMV implementation.

The news source interviewed Heartland Payment Systems Chairman and CEO, Robert O. Carr, who explained that credit card fraud inevitably migrates to the weakest points, and since the larger retailers have, for the most part, already installed the needed equipment for the October 1 shift of liability to merchants, those that are unprepared are mainly the small merchants. “This is not a theory,” writes POS News. “This is exactly what has been seen in countries that already use chip-and-pin. Crooks don’t go away, they simply choose easier targets.”  

According to Heartland, 40% of retailers are properly prepared for the October 1 EMV liability shift, compared to as little as 25% of small businesses according to some recent surveys.

“If I were a small merchant and not prepared for the EMV shift in October, I’d have a sign in the front window of my business that said ‘Due to new regulations, and for our mutual protection, we may ask for a photo ID with a credit card purchase’,” Carr said in the interview. “And then I would stick with that until I had upgraded my equipment to comply with the new laws.” While this might seem extreme, it nevertheless offers a basic level of protection.

According to Carr, merchants currently have no idea how many counterfeit credit cards they take, and starting in October they will begin finding out. He also addressed another area that is likely to be subject to a higher level of fraudulent transactions: e-commerce/online sales. Many online sellers are not using AVS (Address Verification Service) when they accept a shipping address and these sellers will be increasingly targeted by thieves. 

For more information on how to prepare your business for October’s EMV liability shift, attend the NACS Show session, Are You Prepared for EMV?