Just a little over a year since the liability shift, and there’s a new fee to be had. We know what you’re thinking … ‘how could the payment industry possibly think up another fee?’ Well, some providers are now charging a compliance fee if your business fails to upgrade to an EMV-ready terminal.
Surprised? Neither are we.
According to Digital Transactions, National Processing Company (NPC) was the first provider to publicly announce the roll out of this fee. As of January 1, 2017, NPC will begin to charge independent sales organizations and sales agents fees for each business lacking EMV compliance. Of course, these fees could be passed onto the business with a potential markup, which is very likely.
What does that mean for you?
EMV Compliance Fees
As a business owner, you’re subject to an EMV non-compliance fee (also referred to as EMV non-enabled fee) if you’re not using an EMV-capable device. The unfortunate catch is that you may be told you can’t use an EMV terminal right now due to certification delays or have one that isn’t fully functional, but incur fees anyway. Here’s what it may look like on your merchant statement:
Because this compliance fee is so new, it’s unclear how it will be charged. Though the example above shows a flat monthly fee of $25, NPC announced it will add a surcharge on EMV transactions that are swiped using a mag-stripe reader. There’s a good possibility unethical providers may throw an annual fee in there too.
This compliance fee may be intended to push businesses to upgrade to EMV-capable terminals because chip card transactions reduce fraud and are more secure. However, providers may jump on the band wagon to cash in on yet another fee.
The Good News
You can avoid this fee! There are right-minded providers out there that will educate you instead of penalize you. Listen to the advice of professionals, but of course, be careful who you chose to work with. Opt for a transparent provider that doesn’t charge unreasonable fees. Plus, some providers qualify businesses for free EMV-enabled terminals to make EMV compliance more attainable; so you can work with a provider that won’t charge you any fees and get an EMV-capable device right away (win-win!).
Get a free Smart Terminal! Call a specialist today at 888-444-3422.
Have you seen this fee on your statements? Are you still swiping chip cards but trying to achieve EMV compliance? Tell us more below!