If you've ever balanced your budget perfectly just to be hit with a fraudulent transaction, you know just how much that missed payment impacts your bottom line. Credit card fraud leaves you scrambling to cover losses while keeping the rest of your beauty or wellness afloat, from overhead costs to paying staff. 

While there’s no way to fully avoid fraud, EMV compliance can help prevent it. Read on to discover what EMV compliance is and how it protects you and your clients during the checkout process.

What Is EMV Compliance? 

EMV compliance, created by Europay, Mastercard, and Visa, is a global payment processing technology standard that boosts security in credit card transactions. This standard isn’t law. But it’s essential for beauty and wellness business owners and practitioners to protect every transaction from fraud. 

Here's how it works: EMV credit cards come with a small embedded chip. Unlike older types of credit cards, which store client data in a magnetic stripe that's easily hacked, these chips encrypt card information. This makes it hard for anyone to access and steal credit card details without the corresponding encryption key. Plus, when a customer uses an EMV card, the chip generates a unique transaction-specific code that can't be used again, which adds another layer of security. 

EMV compliance became mainstream in 2015 when credit card companies released the technology. Since then, according to Visa, the number of U.S. retailers accepting EMV-enabled cards jumped from 392,000 to 3.7 million in 2019. This substantial increase showcases just how many companies have adopted EMV-compliant technology – and that it’s become the standard. 

Upgrade your POS system with GlossGenius!

How Can EMV Compliance Affect Your Self-Care Business? 

Before asking businesses to switch to EMV-compliant devices in 2015, credit card companies like Visa and Mastercard typically paid the fees associated with credit card fraud incidents. These included the cost of the goods or services, chargeback fees, and the charge of the sale itself. 

But since the switch, credit card companies don’t take responsibility for these amounts. Because they expect businesses to use EMV-complaint POS systems, the responsibility falls on the business, not the credit card company, when something goes wrong.

While using non-EMV-compliant hardware isn't illegal, without an EMV-compliant card reader, any fraudulent charges made with chip cards fall on you as a business owner. This liability shift can cause you to lose out on funds – and even damage your company's reputation. Nobody wants to feel like their payment information isn’t safe, and clients are less likely to do business with you if they can’t trust your system.

While it may feel like clients or hackers would never take advantage of you, think again. Credit card fraud at salons and spas can take a ton of forms. 

Let’s look at an example. A client visits you for a series of expensive skincare treatments. They pay by swiping their credit card with a magnetic stripe, also called a magstripe, with your POS terminal. The payment goes through, but the credit card company issues a chargeback notice three days later. The cardholder says they never made the purchase and claims their credit card details were skimmed to create a fraudulent card used at your business. Skimming is a method people use to steal credit card details at stores and ATM machines. 

In this scenario, your salon or spa is liable for the fraudulent transaction because you didn't use an EMV-compliant payment terminal. This means that you potentially won’t receive any money for that service. If a similar incident happens and you've upgraded your card reader, the credit card company might have been liable for the fraud, saving you time, money, and stress.

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How Can My Business Become EMV Compliant? 

Follow these three steps to get your self-care business on its way to EMV compliance: 

1. Research and Contact an EMV-Compliant Payment Processing Company 

Do your research on which payment processing companies offer EMV-compliant solutions. EMV is quite common, but making sure your processor of choice has it can save you stress later on. Look for a provider with a solid reputation and good customer support that provides everything you need – including both hardware and software. The more you can cover with one provider (like GlossGenius!), the better.

2. Upgrade Your POS Systems 

To process EMV payments, you have to upgrade your existing POS system to one that’s EMV-compliant. This includes EMV software, meaning the program or app you use to run the POS, and a card reader that accepts chip credit cards. Again, the system you chose in the above step should offer both.

If you’re looking for a trustworthy (and stylish) option, GlossGenius' POS systems securely process EMV-chip card transactions. Our card readers, built for beauty and wellness businesses, also accept contactless (NFC) cards and mobile wallet payments for quick and easy checkouts. 

3. Keep Detailed Records 

Receipts, orders, credit card transaction records – document it all. Be diligent about keeping records so you can dispute chargebacks or fraud if necessary. Review and update your books regularly so they're always accurate, and stay organized with systems like spreadsheets and folders. Remember: A good payment processing system keeps records for you.

Protect Your Payments With GlossGenius 

Make GlossGenius your new favorite platform for everything payments, from EMV-compliant card readers and ultra-low credit card processing rates to expense tracking and payroll. Our software doesn’t stop there. GlossGenius also comes with a complete suite of tools to run your business, including  Online Booking, Scheduling, Marketing, and so much more. All our features are designed with style, customization, and ease of use at the forefront, so your clients will always have a seamless experience and you can run things efficiently. 

Upgrade your POS system with GlossGenius!

Ready to elevate your business? Sign up for a free 14-day trial with GlossGenius and see how we can help you protect yourself – and your clients – from credit card fraud. 

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Frequently Asked Questions 

Is EMV Technology New? 

EMV technology isn't new. In fact, this technology has been the standard in many major markets around the world, including Europe and Canada, since 2015. EMV-complaint POS systems are becoming more widespread in the U.S. as businesses recognize the importance of offering secure credit card processing to customers.

What Does EMV Stand For? 

EMV is an acronym for the credit card companies that developed this technology — Europay, Mastercard, and Visa. 

What Is "Card Not Present" Fraud? 

"Card Not Present" fraud happens when a customer's physical credit card isn't present during a purchase, like when the transaction occurs online or over the phone. 

To prevent this type of fraud, ask customers for their CVV codes for online and phone purchases. The CVV code is a three or four-digit number on the back of the card, verifying they’re the legal cardholder. You can also ask clients to verify their addresses during these transactions. 

Why Do EMV Transactions Take Longer To Process? 

With EMV transactions, customers insert their EMV credit card into the card reader. When the card is in the payment terminal, the EMV chip communicates back and forth with the reader to verify the card's authenticity, adding a few seconds to the entire checkout process. Because the credit card needs to stay in the reader for the entire transaction, it can take a bit longer to process than non-EMV payments.