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We’ve all heard of smart phones and smart cars, but did you know there are now smart credit cards?

Also called chip cards, EMV cards are the wave of the future when it comes to security. This global credit card standard was created by Europay, MasterCard and Visa (EMV). The chip technology helps minimize the risk of fraud and identity theft.

Your current credit cards probably contain magnetic stripes on the back. You swipe your cards at readers. However, EMV have chips that store your data on integrated circuits. These cards are slid into special EMV readers. Chip cards create a new encryption for each sale.

People across the globe have been using them for years, but the U.S. has been slow to adopt them. According to, the U.S. makes up 24 percent of all credit card sales, but generates more than 50 percent of fraud worldwide.

So why are Americans so late to the party? Well, like so many other things, it’s the cost. Switching out all our card reading systems (ATM’s, registers, etc.) may cost up to 12 billion dollars.

But the time has come for the transition. “Following the October 1, 2015 deadline created by major U.S. credit card issuers MasterCard, Visa, Discover and American Express, the liability for card present fraud shifted to whichever party is least EMV-compliant in a fraudulent transaction.” –

Example: If a financial institution issues a chip card and the merchant doesn’t have the reader available the liability of the fraudulent purchase would fall on the merchant instead of the financial institution.

If you didn’t have the EMV readers in your business by then, you can be held responsible for fraud-related losses stemming from transactions at your company.

At Kerndt Brothers Bank, we’ve been protecting your financial interests for 160 years. As technologies evolve, we’ll continue protecting you.

U.S. financial institutions have begun issuing chip cards. As a small business owner, you need to be sure you’re keeping pace. It’s time to make sure you have the right types of card readers.

Once you install EMV readers at your company, you’ll no longer have any liability for any type of card purchase, whether it’s swiped or read. The switch will indeed require an up-front investment, which has been on of the main barriers for business to implement EMV technology. It is more than worth it however, you could save yourself legal and financial trouble in the future.

The EMV readers are also set up so they can swipe traditional magnet stripe cards, so if a consumers walks into your business without an EMV card, they will still be able to process the transaction. However, your business will not be responsible for any fraud-related losses from those swiped transactions.

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