If you don’t use this new technology, you’ll be liable
On October 1, the major credit card companies are switching to a more secure chip and PIN system for credit card readers. Businesses that don’t employ this new technology will be held liable in a credit card breach of customers’ data, as we reported more in-depth just days ago. According to Wells Fargo, around 51 percent of small businesses are not prepared for this switch, making it more risky to take credit cards in person.
Square, a mobile payment company, wants to get businesses ready for the switch. First, they gave out 250,000 readers to small businesses across the country to make preparations. Then, they are assuming liability for businesses that have ordered a reader but haven’t received one. In addition, if your business orders a reader through Square, you will get a $49 credit for your processing fees. Incidentally, the reader costs $49. The reader also accepts Apple Pay, which means your business can accept all forms of payment from your customers.
Square is not doing this out of the generosity of their heart
This does provide them with an opportunity to gain more business and a bigger share of the credit card industry. Before you sign a contract with Square, read the fine print to understand all the terms and conditions. I will say that Square looks like it really cares about its customers. I glanced through their blog and Facebook page. They were quick to respond via Facebook to questions, which shows their attention to customer service. Their blog provides a lot of information for small business owners.
Even if you don’t take advantage of Square’s offer of a $49 reader, your business needs to be ready for the liability switch on October 1. If you don’t upgrade to the newer technology, you are taking an unnecessary risk. A new reader is a small price to pay instead of being responsible for a credit card breach that could cost thousands of dollars to clean up and ruin your reputation in the process.
