I said this few times before but let me say it again and get it out of the way:
Disclaimer: I’m a POS reseller and an independent sales agent for credit card processing!
Over the last week, few friends of mine have been contacted by their POS company, and were told that they will need to upgrade to EMV Devices-Pin Pads, to be compliant and they’ll have to switch to the only one processing company that they suggested as they are the only ones that can integrate with their system.
The above has happened with 2 different POS companies that I know of, but I’m sure that more will follow the same policy to try and trick you into signing a contract.
Here is what you need to know:
There is no law at the moment that enforces you to accept EMV enabled cards. However, since the liability has shifted to the merchants, there is no way for you to fight a dispute/chargeback if the card had a chip on it and you did not use a chip reader for the transaction!
No POS Company can force you to use EMV Pin Pad devices if you don’t want too, furthermore they cannot force you to switch to processing company. Exception to this is only the POS Systems/Companies that use their own processor and sell their POS based on the CC processing. (see Clover, Harbortouch, Toast, etc.)
Unless you can get a better deal than the one that you currently have, and that without long term contracts and without any sneaky leasing agreements, there is absolutely no reason for you to switch processing companies.
DO NOT FALL FOR “Your transactions are 70% debit! You could save a lot by accepting debit cards and using a pin pad” dishonest sales pitch! Using a pin pad and an EMV pin pad, can reduce your basis points which is the percentage part of your charges, but can also charge you up to $0.25 per pin entry on top of your transaction fees!
EMV will make no difference with a Delco, if you’re accepting cards over the phone since you’re keying in the numbers and not using the chip reader to process the transaction. Therefore, you’re already liable for that transaction with no chance to fight it in case of a dispute!
Pin Pads will make your life a living hell during rush hours where you’ll have to wait for your customers to use their cards on the pin pads. (Many of them will delay the process a lot)! You’re not a convenience store!
[*]EMV WILL NOT MAKE YOU PCI COMPLIANT! You will still have to complete the PCI Questionnaire, install antivirus to your machines, run PCI Scans every time they needed, and ensure your connection and network are secure. Or, you will still be fined the $20/mo for NON-PCI Validation.
Just be careful with what you’re going to sign, if any of you is in that situation!
With the Credit Card Industry security updates, many POS companies will take the opportunity to benefit from it and take advantage of what you might not know!