Recent data security breaches have led the Obama administration to push forward the EMV (Europay, MasterCard and Visa) chip card technology. Last October 2015, businesses were incentivized to use the new card terminals that had already been introduced into the market, as many were not using them. After that incentive program, businesses now do risk paying for fraudulent transactions if these are in anyway related to the non implementation of EMV chip card terminals.
In sum, liability changed hands: from the payment processor to the merchant. How in practice these penalties will take place is still now clear…. Why is this important for CPAs? Because you have an opportunity (and almost the duty) to discuss with you customers the importance of security. We suggest you make it very clear that there is a financial risk by not upgrading to the new EMV technology.