What you need to know about the U.S chip-and-PIN shift

In October of this year, the U.S payments ‘liability shift’ took hold. Any U.S retailer who has not updated their payment methods to include EMV (or chip-and-PIN) is now responsible for paying back any losses to consumers falling victim to fraudulent activity. The good news for consumers is that they are still entitled to a pay-out if something goes wrong, but it will come out of the retailer’s pocket instead of the bank’s.

The liability shift was intended to bring a wave of change across U.S retailers who have been relying on outdated and comparatively insecure magnetic-stripe payment technology. Although EMV is by no means impossible for hackers to crack, it certainly makes their lives more difficult.

But the stark change in payment methods that many were expecting has not happened exactly as planned. With the current installed base of POS terminals in the U.S estimated to be 12.7 million (not including mobile POS) there is a lot of updating to be done, and many retailers are dragging their feet.

It’s understandable that a lot of businesses will be hoping to avoid paying to update their POS for more secure methods, but the money which would be spent on this technology could end up being lost in costly compensation payments.

However, it’s not all bad news for retailers; Cost per EMV POS terminals is falling rapidly, with many companies now selling them for less than $100. Device manufacturers behind EMV POS will be vying against one another to take full advantage of business available from the liability shift.

Aava Mobile and Ingenico have already jumped on the bandwagon by announcing their revolutionary contactless payment tablet. The Aava and Ingenico partnership provides retailers with a technologically up to date option which will see them through the next few years. This is an excellently timed release for Aava who boast a tablet which combines secure payments with POS management features, all protected with rugged, retail-proof hardware.

A requirement for retailers to update their POS opens a window for IoT providers. With mobile POS terminals to reach 8.8 million by 2020, devices which can not only take secure payments but also gather and analyse purchase data for informing business decisions will be an appealing option to retailers looking to get a greater return on their POS investments.


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