Should you should be using an EMV Chip Reader?
The simple answer is yes, you should be using EMV chip readers for several different reasons. before addressing the reasons why let’s look at a couple of the myths. The first myth is that you must use be reading EMV chips as part of your POS system. That is false, there is no rule or law stating you must read chips. Second myth is that it is cheaper to read chips opposed to magnetic strips. For the most part that is also a false claim. The truth is if you are still reading cards by swiping them in your POS you have accepted 100% of the charge back liability. The failure to use a chip reader for all intent purposes is n acceptable reason for the card holder to file a charge back it seems. While that is not an official reason the net result of the rules would indicate that it is.
You should be planning on implementing EMV readers at minimum
Standalone credit card terminals have been able to accept EMV chips now for several years. POS systems have been playing catch up for years now and making up ground. Swiping credit cards today can result in charge backs for the full amount without reason. Yes, you heard that right. The issuing bank does not allow for any due process regarding the validity of the charge like the old charge back rules. If the card has a chip and you swiped it there is no process to prove it is a valid charge. If the customer charges back you lose. You need to get EMV chip readers
Upgrade your legacy POS to EMV readers or replace it
If you have an older POS system you may not be able to upgrade it to read EMV chips. If that is the case you should look into a system that accepts EMV chips right at the table. Heartland has several POS devices that accept EMV payments at the table. An investment is technology that allows for best practice of EMV chips limits your liability in several areas. In the Seattle Tacoma area contact your Heartland POS dealer National Business Systems at 253-839-9636