For obvious reasons, the major credit card companies take fraud and excessive chargebacks very seriously, and companies like Visa and Mastercard have put forward thorough monitoring and tracking systems to try to prevent the losses associated with them. In October 2019, both companies made changes to their chargeback and fraud defense programs, and it’s important that merchants keep up on the details of those changes, as getting tied up in any of these programs can result in costly fines and burdensome assessments.
From retail stores to restaurants and beyond, hardwired cash registers are giving way to flexible, mobile point of sale (POS) systems designed to make it as easy as possible for customers to pay and for employees and management to go about daily tasks like inventory management, stock ordering, reporting, and more. LightSpeed Retail, ShopKeep, TouchBistro, and Vend represent four of the best mobile touch screen POS solutions available in 2019, and below we’ll take a look at what makes each special and how much merchants can expect to pay to put each to work.
Ever since the introduction of the original Square Reader – the small, white plastic magstripe reader that plugs right into the headphone jack of a smartphone – Square has been a widely recognized brand name among small businesses and entrepreneurs. There is no question the Square Reader was revolutionary for pop-up shops, mobile businesses, and hobbyists, but for all the convenience it offers to small retailers, the question remains as to whether it’s the right choice for larger, fixed-based businesses, including restaurants.
Whether you’re a start-up or an established business, at some point you’re going to be faced with the decision of how to accept electronic payments and whether or not to apply for a merchant services account. That can be a tough choice, as there are a lot of misconceptions surrounding merchant accounts, from the difficulty of approval to their usefulness to different kinds of businesses.
While some businesses find a way to get by without one, most companies will eventually come to the decision that a merchant account is the right choice for them, and with good reason. The alternatives that exist, while serviceable, aren’t ideal, and the benefits to be gained from a merchant account are hard to ignore.
Updating payment equipment by companies to chip cards with embedded microchips has added a level of security to businesses and their customers. Fraudulent transactions risk has significantly reduced due to chip cards technology. Implementing point-to-point encryption reduces payment card fraud from counterfeit cards. The liability shift from financial institutions favors applying EMV technology to great effects.
The only challenge which companies are facing is putting in place EMV systems that bonds seamlessly with their specific EMV hardware.
What is EMV?
EuroPay, MasterCard, Visa (EMV) is a form of payment that bonds plastic cards with microchips. EMV cards, unlike normal credit cards, generate particular code for every transaction its user makes. The issuing bank shares the code to ensure it is legitimate. The microchip codes generated cannot be replicated, thus ensuring security against creating counterfeit cards by thieves.
Why Create EMV Card?
To curb hackers from stealing and selling credit card information that creates counterfeit cards, EMV was developed. Creating a card that generates random codes for every transaction ensures a minimal chance for counterfeit cards. The challenge, however, is that EMV cards are only helpful where a card can be inserted or swiped into a point of sale. Tokenization and point-to-point encryption eliminate card data breaches.
What Entails EMV Compliance?
EMV compliance requires installing point-of-sale terminals which are EMV-enabled and certified by a particular bank and ensuring that payment application is EMV certified for every card network. Depending on user’s application of EMV compliance, the terminal cost ranges significantly. Users ensure these terminals are installed with the EMV-compliant software.
What are EMV Security Weaknesses?
EMV cards are only applied where payment cards can be used in a point of sale. Online transactions which are highly fraudulent are not protected. Payment card security experts have concluded that hackers can still access unencrypted payment information from personal account number by removing the codes generated. EMV reduces fraud while point-to-point encryption eliminates fraud.
Companies that use debit and credit cards as a form of payment should consider becoming EMV compliant to significantly reduce fraud while also providing other benefits to a company such as the liability shift. Contact us now for more information.
We all know that the chip, or EMV, POS is becoming the new standard for card-reading technology. But what is the difference between the original magnetic stripe and the new EMV? And which one is better?
What is a magnetic stripe card and what does it do? Well, your credit card is a storage device. It has all your important information, like your account number, your full name, the expiration and security codes to your card, even your Pin. This data, when stored on a magnetic stripe, is not protected at all.
These magnetic stripe cards base their system on trust. The merchant trusts that your card is valid and that you will make payments on that card, while you trust that the merchant won’t steal your information and use the card themselves.
But over the years, this trust wore down because security methods that supposedly protect your data have not kept up with the changes of technology. That makes them vulnerable to hackers. And because so many people have had credit card theft, it increases the risk for more fraud in the future.
The main source of this problem is inadequate credit card security. In 2012, the USA lost $5.3 billion in fraud compared to $6 billion for the rest of the world combined. It is the only country that has consistent fraud growth every single year.
To prevent more fraud and to rebuild your trust in the credit card companies, the EMV card was made and is being implemented all over the world.
EMV stands for Europay, Mastercard, and Visa. Unlike the magnetic stripe, it has a computer chip which is much like an application to store your data. That computer chip is encrypted and it forces the systems it communicates with to follow specific instructions set up by your bank or credit card provider that check for your identity.
Because the EMV has to follow that list of instructions, your card and the terminal it is inserted into have to “talk” to one another and agree on which application should be run. Your information is encrypted by cryptographic keys and have a unique dynamic data authentication key, like a fingerprint. That is why it is so hard to duplicate a card with the EMV technology.
Since the instituting of EMV cards, fraud has been reduced in all areas of credit card use in the 28 countries which are part of the European Union. But fraud still continued to grow in the US, mostly because a majority of merchants won’t switch to the EMV cards.
If merchants were to switch to the EMV cards all across the US, credit card fraud would begin to go down. Identities would be protected, money saved and trust rebuilt. While EMV cards can’t prevent fraud 100 percent, it is far greater than anything the magnetic stripe cards can do. If you want to keep your customers safe and save your company time and money, contact us today and we can get you started!
Over the last few years, many credit and debit card issuers have added the EMV chip to their cards. These are the little golden spots on cards that look somewhat like mini circuit boards. Inside them, microprocessors are embedded that encrypt data and make it more secure during transactions. There are many upsides to enabling your point-of-sale (POS) equipment for reading these chips. Here are some of the main benefits:
Transactions Gain a New Layer of Protection
Use of the EMV chip cards thwarts the use of skimmers, which steal information from swiped credit cards. They also prevent other forms of “sniffing” credit card numbers and transaction information done with other methods. Many customers are wary of such risks thanks to extensive media coverage about such fraud. These people will be glad to be able to use their chip cards, and some may even shy away from doing business with you if you don’t have it.
You’ll Lower Your Legal Liability
If someone gets their data stolen and points at your company, you’ll want to be able to show that you took all reasonable steps to protect their information. This includes using an EMV-capable card reader.
Your Company Will Be Seen as More Up to Date
EMV chip card acceptance has now been around long enough that people are seeing it as the standard. If your store or other outlets still force everyone to swipe their cards, it’ll be seen as a bit behind the times. In some areas, customers may even comment to this effect. Make sure you give the impression of being fully ready for modern business by adding this basic upgrade to your POS systems.
To learn more about upgrading your system to read EMV chips, just contact us. We’ll be glad to explain the technology and give more details about what makes updating worthwhile.