As the October deadline for adopting EMV compliance creeps closer, small business owners might fear an uphill battle ahead. Accepting cards with EMV chip technology requires a complete upgrade of existing point-of-sale systems. More than one-third of American small-business owners have cold feet about adopting the technology, said Entrepreneur Magazine. Their hesitation lies primarily in the cost of transitioning from traditional terminals to a completely new payment infrastructure.
Despite perceived drawbacks of a POS upgrade, there are solutions to these fears: Merchants stand to lose a lot more than just the money it costs to upgrade if they do not upgrade to the most secure systems available - terminals that accept EMV chip technology. Upgrading doesn't have to be a major risk to the return on investment. In fact, POS upgrades can offer more to small businesses than improved security compliance. Multifunctional, mobile payment platforms can help improve business strategies and secure customer loyalty, according to The National Retail Federation.
Getting a return on investment
Customer service is the key to a healthy bottom line. If business owners find the initial cost of upgrading POS systems unsettling, there is an antidote to calm the nerves: Spending money on the new technology is an investment in fortifying customer loyalty.
Every consumer wants to feel safe against the threat of fraud, and EMV compliance means not leaving faithful customers to the whim of chance. In other words, upgrading POS terminals to meet new industry guidelines is the surest way to value customers, The National Retail Federation added.
Save money in the long term
Business owners need to protect everything they have worked so hard for and make sure that they are not at risk of financial loss if a breach occurs. After October 2015, all companies without the ability to accept EMV cards will be responsible for any breach of security in their transactions, reminded Entrepreneur. Modernizing POS systems not only benefits customers, but protects merchants from incurring liability costs.
Provide more than security
The way to maximize investment in new POS terminals is to build customer loyalty with more than the promise of security alone. The latest technology incorporates analytics capabilities that can revamp business models for the better. The more a retailer knows about its individual customers, the more it can tailor its email marketing, loyalty programs and promotions.
How to be practical
Replacing traditional cash registers with terminals that can accept payment via mobile devices is necessary to keep up with customers' expectations. While the price of new infrastructure is a concern - Wi-Fi, mobile device management services and security are a lot to think about - retailers can look forward to the cost-effectiveness of a mPOS payment infrastructure.
The lingering question
It's not enough to know the necessity behind upgrading POS systems. Merchants still want to know how to make the switch possible, without requiring too much time and effort. It can be challenging for a business owner to find the time to learn the best practices behind implementing new technology. Thankfully, a payment processor provider can help them with every step of the way.