Aumua and Small Business Committee Address EMV Deadline
Washington, D.C. – Wednesday, Congresswoman Aumua Amata, and theHouse Committee on Small Business conducted a hearing to examine the upcoming Europay, Mastercard, Visa (EMV) chip deadline, and the efforts being made to ensure that America's small businesses are in compliance with the requirement of these credit card processors.
An EMV Chip(gold colored) set into a new Credit Card
"In American Samoa, so many of our businesses qualify as a small business, and we must make sure these small shops are not over burdened with new costs like, equipment, employee training, and made liable for incidents that are out of their control," said Amata. "I fear that this new system will place such a burden on many small businesses that they may be forced to close their doors," continued Amata.
The switch to the new system has been implemented by financial services companies (private industry) that have mandated an October 1, 2015 deadline for customers to shift point of sale (POS) terminals to an EMV chip system.
The upgraded technology is designed to enhance protection against cybercrime and fraud. However, many small businesses are unprepared for this new technology. These businesses will not only be more vulnerable to cyber threats, but they will also be held liable for certain incidents of fraud. A July 2015 study by Wells Fargo / Gallup, observed that less than 49% of small businesses are aware of the October 1 deadline and liability shift.
"Before our small business owners are surprised with increased operating costs and liabilities, we must make certain that they are given a chance to comply with these new mandates from the financial services sector, anything less is irresponsible and dangerous," concluded Amata.
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