Small Businesses Not Ready for Switch to EMV

A new survey shows that many small-business owners are not ready for the new generation of credit cards, although they are mandated to start appearing this fall. A big change is on the horizon for retail businesses: the new generation of credit cards. Retailers of all sizes are being urged to covert from the magnet strip credit card to the Europay, MasterCard and Visa (EMV) standard as of October.

For businesses not ready for the change, they open themselves up to liability in the event of fraudulent charges. However, businesses can make the switch quickly and with little capital outlay with the QuickBooks Mobile EMV Card Reader from Intuit. Designed to work with other QuickBooks products, including QuickBooks Online and QuickBooks Desktop, the Card Reader is easy to set up and operate. It is also mobile so you can take it with to on-location sales sites. This device can definitely get a small-business owner by until he or she is ready to convert to a more permanent unit. Intuit officials said they have been working to create items to help businesses meet the changes that the new cards will demand. Read more in Business « A Marketing Tool Called Website Fastunsecured.com Can Guarantee Approvals on Unsecured Business Lines of Credit » Intuit did a survey with Ebiquity and found that less than half of all small-business owners –- just 42 percent – are planning to make the switch from magnet strips to EMV. Of the 58 percent of businesses owners not planning to make the switch, 42 percent said they were unaware of the pending change. With just a few months to go until EMV becomes the standard for credit transactions, it is unlikely that those 42 percent of business owners unaware of the pending shift will be willing to make a massive overhaul of their current system. That is why the QuickBooks Mobile Reader may be a viable option for many businesses. The survey showed that 58 percent of small businesses have higher sales due to accepting credit cards, but that 57 percent of them cite the cost of new terminals and equipment as a factor in holding back their conversion to the new system. That presents an issue as it is believed that 86 percent of the small businesses either refusing to make the switch or undecided about the move could not handle the liability associated with fraudulent charges. The QuickBooks Mobile Reader can be pre-ordered for $30, increasing the likelihood that it will be a chosen stopgap measure for many small businesses. The cost-effective solution is expected to give small-business owners a viable avenue to meet the new standard. Another benefit is that the Intuit reader works with other QuickBooks systems that businesses may already be using. That likely will give the QuickBooks Reader a leg up on its competition. In a statement, Intuit officials Ralph Matlack, director of product management, and Jason Pugh, head of product, said informing merchants about the pending standard change is vital. “It is all about education,” they said. “There’s a lot of confusion around EMV; and we’re taking the approach to actively reach out to our customers and make they aware of the change in liability. The Intuit Small Business Resource Center is designed to demystify EMV, educate our customers and arm them with facts. We suspect as the change in liability approaches we’ll see a lot of education also happening via word of mouth.” Sansone Accounting & Tax is a provider of QuickBooks and accounting services. Sansone is known for guiding clients through planning and preparation decisions to minimize tax liabilities and help increase business efficiency. Whether it is questions about QuickBooks or new business taxes, the firm prides itself on being available to play a major role in supporting financial, record-keeping and tax-planning issues. To schedule an appointment with one of Sansone’s certified public accountants, call (815) 459-4300.