As American Express’ Small Business Saturday quickly approaches, it’s time to start preparing your business – not just for heavy foot traffic and (hopefully) heavy sales, but also for the frequent swiping of credit and debit cards.

Did You Know: As of October 1, 2015, the liability in certain fraudulent transactions shifted to whichever party involved in the transaction was the least EMV-compliant. In the past, an in-store transaction made with a stolen card generally resulted in the consumer’s loss falling back on the payment processor or issuing bank, depending on the card’s terms and conditions. For the past year, however, the liability has shifted to the least compliant business owner, meaning your small business could be at risk if you haven’t upgraded to EMV technology yet.

Your small business may be liable for credit card fraud this Small Business Saturday if you don’t have an EMV chip reader. Tweet This

Despite this looming risk, less than 40 percent of retailers have adopted the technology, according to the Strawhecker Group. The main excuse for not switching seems to be money: 33 percent said that switching to the new chip reader was too expensive (costs to switch are estimated at $500-$1,000). While the cost of upgrading may seem minuscule compared to the cost of fraudulent expenses on a consumer’s card, the fact remains that many small businesses do not have the cash flow to purchase new equipment in this price range. Those using card readers that sync with electronic devices such as iPads may be in luck, though. Square, a provider of mobile payment services, offers a card reader with EMV chip technology for just $49. If you don’t use mobile payment systems like Square, you may end up paying a higher price to switch your technology, but after making the switch, your business may be safer in the long run.

The U.S. Small Business Administration has many more resources to help you better understand EMV technology and what it means for your business, be sure to check out their webinars, videos and more.

If you’re interested in learning about other ways you can protect your business, visit our Managing Risk Guide for more information.

Photo Credit: doondevil, Twenty20