Visa and MasterCard Improve Chip Certification Process for Merchants
Merchants who have not started accepting chip debit and credit cards in their stores and restaurants may now have new motivation to make the switch. Visa and MasterCard reported they will now be speeding up the certification process for EMV checkout terminals.
Many merchants have said they have not started accepting chip cards, even though they have the equipment to do so because of “certification bottlenecks.” In other words, they’re ready to switch, but the certification process is taking too long, forcing the merchants to pay for fraudulent transactions that could have been avoided if the certification was allowed to process. Visa and MasterCard have both agreed to correct these issues so merchants can take part in the move to EMV technology that started in October 2015.
Another obstacle is the way merchants make the EMV transition. They must first acquire the hardware needed to process smartchip cards, and then must obtain new software that is compatible with the technology. That’s where the holdup starts. Hopefully with the certification issues out of the way, merchants will have an easier time accepting chip cards in the future.
Earlier this year, a report from CBS News showed that approximately five million merchants in America now have EMV card readers, but only one million of them have the chip features activated.
Visa and MasterCard have also agreed to lower the fees merchants incur from counterfeit transactions, which could prevent future lawsuits. In March, a Florida-based supermarket chain filed a class action lawsuit against a number of card issuers, claiming the fees they were charged after the liability shift had cost them over $10,000 in just five months.