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Hotel Merchants Running Out of Time to Upgrade POS Systems

In only a few weeks, the payment processing system in the United States will undergo a major shift as retailers across the country upgrade their processing systems to accept EMV enabled cards. EMV or Europay, MasterCard, and Visa, has been the standard across many countries for the last decade. EMV cards are fraud deterring chips embedded within debit and credit cards. Having the technology to process these cards has become mandatory for all card distributors as the U.S. tries to crack down on credit card fraud. But merchants that don’t have the right equipment by October 1st will be left footing the bill if involved in a credit card breech.

Almost 50% of all credit card fraud happens in the United States. Since the rash of credit card breeches that have occurred at major retailers like Neiman-Marcus, Target, and Home Depot, the public and many financial institutions have pushed for the usage of EMV chips instead of the classic magnetic stripes. Whenever an EMV enabled credit or debit card is used, a unique code is produced that enables the transaction – technology the conventional magnetic strip does not possess. According to a survey of financial institutions in the U.S., around 63% of credit and debit cards will contain the EMV chips by the December. By 2017, 98% of cards will have the chips. Starting in October 2015, retailers will be responsible for having EMV reading capabilities to ensure consumer financial safety. Therefore if a consumer’s card information is stolen at the merchant’s POS system without the correct technology, the merchant will be responsible for assuming the costs.

Retailers who haven’t replaced POS systems, should first see if it can be upgraded by adding a PIN pad and card swipe reader. Shop around before purchasing new equipment. Check for discounts offered by banks and on trade recommendations from other retailers. Research internet compatible terminals, and mobile compatible devices for future transactions.

The time is now for merchants to integrate EMV enabled systems into their businesses before they are left footing the bill. This is especially important when you are in the hotel business. EMB has EMV reading technology along with the best merchant support professionals in the nation that provides excellent hotel credit card processing.