Banks can Lean on Their Merchant Services Providers for EMV Support

Banks can Lean on Their Merchant Services Providers for EMV Support

As the October deadline for adopting EMV compliance creeps closer, merchant services providers will play an essential part of assisting banks with the transition to EMV. With their help, banks will be able to provide solutions to merchants with questions or concerns around switching to EMV compatible hardware. Here are several important ways banks can lean on their merchant services providers for EMV support:

Merchant Service Providers should help banks gather merchant data
Many banks are very familiar with EMV as they have been issuing chip-based credit and debit cards for several months. This is a positive sign that banks are preparing to support the “liability” shift come October 2015. However, they also need assistance working with their business customers to prepare them for EMV. Merchant service providers are now becoming proactive on assisting merchants on becoming EMV-ready and will be a primary source to assist the banks merchants with the conversion. These providers can be an excellent partner to banks and will gather merchant data for the banks on what merchants in their portfolio are EMV compliant. In addition, the merchant service providers will assist banks on researching what type of business each merchant is (ex: restaurant/retail, etc.) This will help relieve the burden from banks significantly. Another imperative aspect is the merchant services provider will know whether the merchant runs on high speed Internet or dial-up. If a merchant is running on dial-up Internet, this could greatly affect the transaction time for consumers when making a purchase with EMV software. As a result, a merchant service provider can recommend to the merchant that they need to upgrade their Internet speed so their business can successful run EMV software.

Merchant Service Providers should be providing EMV marketing materials
Banks could add significant value to the relationships with their clients by explaining the importance, timeline, and benefits of EMV. Merchants will most certainly have questions and concerns about how EMV will affect their businesses. As merchant services providers help educate banks on EMV now, they will be able to assist merchants with any future inquiries and become a fundamental informational source.  Merchant service providers should also be providing the bank with informative EMV material including placing EMV awareness content on their company websites, billing inserts, or brochures inside the branches.

Merchant Service Providers should be providing cross-selling support
After October 2015, all companies without the ability to accept EMV cards will be liable for any fraudulent transactions. This is a great opportunity for banks to encourage merchants to make the switch to EMV compatible hardware. However, they should not have to do this alone. Merchant services providers should be proactively assisting non-compliant merchants with the changeover in conjunction with banks. Not only will banks profit from persuading merchants to purchase EMV equipment, but also will additionally be a driving force in securing customers, merchants and banks from incurring liability costs.

It can be challenging for a bank or business owner to find the time to learn the best practices behind implementing new technology, such as EMV. However, by utilizing their merchant services provider, banks can position themselves to become leaders on EMV technology and a key resource to their business banking customers. Merchant service providers will assist banks with critical pieces of the EMV strategy including gathering merchant data, becoming a key resource on EMV, and providing cross-selling support.