Mandatory use of EMV cards starting October, 2015.
Protecting consumers’ sensitive information is a priority for retailers and consumers alike. To help with this protection, Federal regulations are being developed to incorporate the mandatory use of EMV cards starting October, 2015. These cards have an embedded microprocessor chip that encrypts, protects and stores cardholder data. Chip cards are more difficult to duplicate due to their authentication capabilities -- making fraud and card duplication more difficult.
Retailers who do not have EMV card readers will be liable.
EMV cards are widely used in Europe, however, the United States’ credit card industry has been slower to provide this technology. As proposed, the new U.S. credit cards could be used with either EMV or signature processing systems; however retailers who do not have EMV card readers will be liable. Here’s why: currently, if you run a fraudulent card, banks absorb the costs. Starting in October 2015, if someone pays with a fraudulent chip card, and you’re not set up with an EMV card reader, the banks will no longer be liable. For example, a fraudster buys $30 worth of socks from a shoe store with a counterfeit EMV chip card. If the store doesn’t have a chip card reader to process the transaction, it could be on the hook for the $30.
Protect your business.
In order to be in compliance when the regulation becomes effective October 2015, we encourage you to communicate with your current merchant services provider as soon as possible. They will be able to provide you with the most up-to-date details about how the new systems work, along with upgrade requirements for business’s data payment collection information systems. Getting an EMV-enabled device is a good thing to start considering. The sooner you’re set up, the sooner your business will be better protected.
Need assistance? The representatives at Worldpay, a Retail Merchants Association endorsed vendor, are available for consultation on EMV card technology.
For further information, questions, or concerns, please contact a member of our lobbying team.
Virginia Retail Federation (VRF) was challenged to convince the Virginia General Assembly of the negative impact the Governor’s budget proposal pertaining to the “Accelerated Sales Tax” (AST) would have on retailers. AST requires businesses to pay one month’s sales taxes early and currently applies to businesses with $26 million in annual sales.
Effective July 1, 2015, the newly adopted State budget lowered the AST threshold to businesses with $2.5 million in annual sales. This will dramatically impact over 4,000 additional small retailers who will now be required to pay AST. This means that a business with $2.5 million in annual sales tax must pay 90% of their anticipated monthly sales tax for June before those taxes have been fully collected. Under current procedure, collected sales taxes are due the next month. Even though the state budget goes into effect July 1,2015, the law requires retailers to estimate taxes and submit in June of 2015. The accelerated payment requirement applies only to the month of June. However, this means that many retailers will have to pay double taxes in June 2015: both the actual taxes due for May sales and the estimated taxes due for June sales. If a retailer overpays taxes the June taxes, the overpayment will result in a credit for their July. It will not result in a refund.
For more information you may vist the Tax Department's website at http://www.tax.virginia.gov/content/accelerated-sales-tax.
Contact a member of our lobbying team with any questions.
Effective July 1, 2015, all three of Virginia’s Sales Tax holidays will be consolidated into one. The combined tax holiday will be held from August 7 – 9, 2015 and will apply to items previously covered in the Hurricane Preparedness, Back to School, and Energy Star/Water Sense Tax Holidays.
Items that are required to be tax free during this three day holiday include:
- School supplies ($20 or less), clothing and footwear ($100 or less)
- Energy Star and WaterSense items ($2,500 or less)
- Hurricane and emergency equipment (portable generators $1,000 or less and many more items)