As a merchant that accepts credit cards it is imperative that you understand the repercussions of the recent liability shift. Not being in compliance can be extremely costly to your firm as any fraudulent charges will be a liability of your firm, not the credit card company.
If your company accepts credit cards and you do not have an EMV card reader you can be on the hook for chargebacks, and other costs associated with fraudulent transactions.
As of October 1st 2015, how does this affect you? Depending on your insurance program this currently may or may not be an uninsurable loss so it is important to take the proper steps to manage this risk and have Deland, Gibson properly construct a policy to build in coverage for assessments.
Getting an EMV reader is only one step in PCI compliance (Payment Card Industry). PCI compliance also leads into data security – are you comfortable with your current level of risk? Most merchants and companies are unaware of the volatility and impact such an event can have on a firm. It is important to walk through a Deland, Gibson Risk Identification Clinic to properly identify, organize and address these risks.
Recent examples of assessments due to PCI Violations:
- National Restaurant Chain: 150k in records exposed, $2MM in assessments.
- Small Hotel Chain: 15k records exposed, $350k in assessments
THESE DO NOT INCLUDE GOVERNMENT FINES – This is merely assessments from the credit card company! This can be an enormous impact to the cash flow of your business.
It is paramount to prepare for this exposure. Contact Deland, Gibson for more information on lowering this risk.