CONTENT BROUGHT TO YOU BY: ABC Financial
By now, chances are that you have heard the term EMV related to your credit card. EMV is an enhanced credit card security protocol developed in collaboration by EuroPay, Mastercard and Visa. This security protocol has been used outside the United States since 1999. EMV uses a microchip embedded in a credit card to more accurately identify that the card being used is not fake.
In a standard credit card transaction, the merchant or system calculates the amount of the transaction, you swipe the magnetic strip on your credit card across the card terminal and then you scrawl your signature on a receipt. The problem is that the magnetic strip contains static data that can be stolen easily and passed around, increasing the likelihood that your gym members will be vulnerable to fraud during a point of sale (POS) transaction in your facility.
With an EMV, or chip card, this process changes. Rather than swiping a strip, you will insert the chip-end of the card into a terminal, leave it inserted while the system securely validates your card, type a PIN code or sign your name, then remove the card when prompted. Like the magnetic strip, the chip contains data. However, the chip's data isn't static; it changes every time you use it. This makes it substantially more difficult for scammers to take advantage.
Why Do We Need EMV?
Despite being one of the most technologically advanced nations on the planet, the United States leads the world in credit card fraud. Other nations such as Canada and Australia have reduced credit card fraud by adopting EMV technology, but the United States continues to see instances of credit card fraud rise. To put it bluntly, we are standing still while others have moved ahead, and EMV can change that.
The Effect on Health Club Members and Other Consumers
When people come to your fitness facility, they want to focus on working out. When they are doing squats, they need to be thinking about the mechanics of the movement, not about whether they will have to deal with their credit card company. Consumers expect businesses to take care of them, and by introducing EMV, another layer of protection is added to the payment process. It is estimated that roughly 70 percent of consumer credit cards will support EMV by the end of 2015. Your health club cannot afford to be left behind.
The Effect on Your Business
Naturally, you want your consumers to be as safe as possible, but switching to an EMV system has other benefits. First, you are protecting yourself. With the change in how POS transactions operate, the liability of who is responsible for credit card fraud will shift to the least compliant party. If you don't have an EMV system, that's going to be your business.
To be compliant, you'll need to change the POS hardware in your business. As a gym owner, your goal is to keep your customers safe. You want them to perform exercises that use the correct posture, and you want them to keep their bank accounts safe as well. EMV helps you do that.
Joining ABC Financial in 2007 as the chief information officer, Doug Elkins leads the timely development, accurate delivery and effective management of the world-class software, systems and networks that serve ABC Financial's customers. He works within the executive team to develop and deliver business opportunities, promote product and industry diversity and support ongoing corporate growth.