A disturbing 61 percent of merchants in a recent survey were found to have unencrypted credit card data stored on their networks — specifically, the unencrypted 16-digit sequence on the front of credit cards, also known as the Primary Account Number (PAN).
Since the first credit card was introduced more than half a century ago, plastic payments have been a contact sport. Now, with the development of near field communication (NFC) technology, POS transactions are going contactless.
Now that EMV chip cards have arrived in the U.S. and consumers are getting used to the “dip” instead of the “swipe” at the point of sale, there’s been a lot of talk about how the technology may not be as safe as we’ve been led to believe. Some commentators have even started referring to chip-and-PIN cards as chip-and-pain cards, claiming that the switch to EMV will not solve payment card fraud.
If you’re a business owner who’s still on the fence about upgrading your payment processing equipment to accept EMV cards, consider this: Not only will the update help prevent potential financial responsibility for fraudulent transactions, but you can also realize the added benefit of being able to process NFC transactions at the same time.