What Does EMV Chip Card Adoption Mean for Nonprofits Worldwide?

On Oct. 1, 2015, the payment card industry will undergo a liability shift concerning which party is responsible for fraudulent charges processed on non-EMV-compliant terminals. If nonprofits don't meet the upcoming industry guidelines, they'll be liable for financial damages and any other repercussions that arise from a fraudulent charge.

Credit card fraud - both at the point of sale and online - has increased in recent years. In fact, total global payment-card fraud losses reached $11.3 billion in 2012. The U.S. is one of the last developed nations to fully adopt EMV, but there are approximately 2.4 billion EMV chip cards in circulation worldwide and 37 billion terminals.

Nonprofits are uniquely positioned for the upcoming liability shift in that they don't have to install new point-of-sale terminals to process online donations. All they have to do is partner with a trusted nonprofit payment processor that's EMV compliant. If a nonprofit fails to do so, it will be responsible for the ramifications that result from a fraudulent charge on a donor's credit card.

Although nonprofits don't technically have to upgrade POS systems, that doesn't mean they're impervious to a potential attack. Since card-present technology is becoming safer, fraudsters may turn their attention online. Yet, by partnering with the right payment processor, nonprofits can bolster security and ensure the protection of donors' sensitive information.

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