The Europay, Mastercard and Visa regulation (EMV) is sweeping the restaurant industry as of lately. This new innovative and security based development is effective as of October 1st, 2015 and is comprised of a set of specifications for smart card payments and acceptance devices, as defined by the EMV Connection. During this important and potentially costly shift, don’t hesitate to implement a NY Restaurant Insurance policy. Although it will be beneficial to eventually make the switch, it has become a recent marketing ploy from payment companies and hardware manufacturers to scare restaurant owners into a hasty sale. Therefore, let’s examine the top five myths associated with the EMV to enable you to make an informed decision for your restaurant.
Myth#1: EMV is Required- Although some sales companies would like you to believe that it is required that restaurants obtain EMV payment terminals, there is no governmental law or industry requirement that forces you to obtain one. Contrary to popular belief, those establishments without the proper payment terminals will not be fined after October 1st.
Myth #2: EMV Will Protect Against Data Breaches- Although these micro chipped cards come with added security in terms of preventing counterfeit use, the EMV alone will not protect against data breaches.
Myth #3: EMV Will Prevent Magnetic Stripe Card Usage- Quite the opposite: the EMV chip cards will not replace magnetic stripe cards but rather they will have a magnetic stripe included, as well. Despite having an EMV terminal, you can still accept typical credit cards without any issue.
Myth #4: EMV Required to be PCI Compliant- The Payment Card Industry (PCI) does not require an EMV system to be compliant with data standards.
Myth #5: EMV Will be Adopted Quickly and Universally- It is estimated that only 20-30% of cardholders will have the EMV micro chipped cards by October 1st. What’s more, the new system is going to take approximately 3 to 5 years to be fully integrated into the U.S., according to experts.
At RMS Hospitality Group, we understand the risks involved with the dynamic restaurant industry and strive to keep your coverage current with quality solutions. For more information on how to protect your business during this EMV transition, as well as our other offerings, contact us today at (888) 359-8390.
At RMS and associated firms, business continues as usual. Our staff is remote-capable and available to handle all partners, brokers, and insureds at the present time.
