Have you been waiting in line to check out at your local retailer and overheard the cashier ask the customer ahead of you if they have “the chip,” and then after they answered “yes,” wondered why that customer inserted their credit card into the machine instead of swiping it? Or, have you wondered why your bank left you that voicemail asking you to come in and “order your new chip card?”
This chip card that you keep hearing about is also referred to as an EMV card, which is a payment card with an embedded microchip. EMV cards help prevent fraud in the store by protecting sensitive cardholder data. In a card-present environment, cards can be skimmed, lost or stolen. EMV cards help to protect customers and merchants alike from fraudulent activity, and are already the global standard for both debit and credit cards.
I’m willing to bet that it is a pretty rare occasion for your salon guests to pay for purchases with cash these days, even for small items such as eye protection or a single-session equipment upgrade. So, what does all of this EMV stuff mean for you as a salon operator who accepts credit and debit cards?
The United States accounts for a substantial percentage of worldwide card fraud and the major card brands have made a push to considerably decrease the occurrence of fraudsters taking advantage of hardworking and honest citizens, such as you and your salon guests. Effective THIS month, the liability shifts from the processors to the merchants (meaning you).
The migration to EMV cards across the U.S. will not happen overnight, so to have the least possible impact on consumers, these chip-enabled cards will also still have the familiar magnetic strips for a period of time. The difference will be, however, who bears responsibility and who is financially liable should your customers become victims of fraudulent transactions. If you process card-present transactions at your salon, you will be responsible for items such as chargeback-related costs until you invest in chip-enabled technology.
As with any sort of change, apprehension is inevitable. Once you’ve invested in the proper technology and hardware to accept chip cards in your salon, a proper implementation is imperative to ensure a smooth transition. Make sure that you and your staff receive the proper training on how to use your new chip-enabled devices, so that the experience is a positive one from a customer service standpoint.
Most importantly, although converting to chip-enabled technology may seem like a somewhat daunting task, be sure to remember the advantages! Not only will you be protecting your customers (and your livelihood), you will also open the doors for new business opportunities such as the ability to accept foreign cards that are already EMV enabled, or to process mobile payments. ■
