Common sense would say that the April 2018 reinstatement of fraud liability by Visa and American Express would give lagging U.S. merchants renewed motivation to embrace chip card security.
Seems like a no-brainer, right?
Late-adopting retailers are notoriously cautious about technology upgrades, particularly in areas like payment processing where they have been sold short before. If these merchants are to make new capital outlays, odds are that they need to feel financial pain first.
Many think that such pain comes only in the form of chargeback losses.
Again, not so.
Merchants, even those with tolerable chargeback levels, are now facing EMV-related costs that they didn’t see coming.
Business insurance carriers have woken up to the risks of data breaches. They are writing stricter provisions into policies around PCI compliance and requiring audit documentation from QSAs. Bank lenders are building data security into their loan covenants, too.
Loan and insurance trip wires can trigger explosions on financial statements and cut the life expectancy of C-level execs.
So what are businesses to do?
The reflex reactions can be expensive. Validated P2PE Solutions and fully integrated EMV certifications involve long roadmaps, upfront PCI workloads and ongoing vendor lock-in.
No. What’s becoming more and more appealing to sophisticated merchants is ridding themselves of card data altogether. They simply don’t want toxic material inside their house, whether it’s encrypted or not.
RFPs from well known retailers are starting to result in the ripping out of in-store controllers, POS middleware and data center switching software. They are being replaced with what are known as “terminal-to-processor connections”.
A terminal-to-processor connection is just that: a secure, direct circuit between a card reader and a processing host.
With these direct connections, there’s no need for expensive P2PE messages to traverse merchant networks. Middleware installations and gateway fees go away. The result is a trifecta of lower costs, straighter transaction paths and less PCI burden.
Knowledgeable merchants get it right away. It’s a no-brainer.
RevChip performs the best terminal-to-processor connections available in the U.S. market today.
RevChip is the most comprehensive and affordable EMV-NFC software built for the U.S. market. It connects to major processors without a transaction fee and runs equally on Verifone and Ingenico devices. Using RevChip, merchants eliminate card data from their systems and shrink the burdens of PCI. The RevChip SDK provides POS developers with a quick and thorough EMV integration without the hassles of middleware.
To learn more about how RevChip solves for EMV, Quick Chip and Apple Pay, download our Semi-Integrated EMV Guide or reach us at (800)560-0415.