EMV and all the *&%$@? confusion

Only about 60% of you know what is happening on Oct. 1, 2015 with the EMV Liability Shift and the Chip Cards. I have to say this is turning out to be one of the most botched roll outs of technology shift ever. In a nutshell here it is: Today, if there is a breach, fraud, you name it, the Processor bears the burden of the cost’s associated to mitigate the fraud. On Oct. 1, that burden shifts to the merchant/restaurant owner if they don’t have the technology to correctly process a chip card. The new technology isn’t a mandate, so don’t let anyone tell you it is. You can continue to do business just as you are today, knowing that if you swipe a Chip Card and fraud occurs from your business for that card, you are responsible for all the costs for that breach. Here is the greater HEARTBURN, in my opinion. This new technology doesn’t allow for the processing of tips after the fact, essentially you have to ask for the tip before the card is ran. Here is how the chip card technology works: The chip card is “dipped” into the slot of the device which can be a stand alone terminal or a pin pad attached to the POS System (more on that later). The card stays in the slot the entire time the transaction is processing. The chip is read by the device and the card information is given a unique one time identification for transmitting. Each time a chip card is used, it is given another unique identity, never using the same one, this is the theory of how we stop fraud and theft from credit cards. This technology is great as long as you have a business that is Quick Serve, where the customer is right at the counter to do all of the work and authorize the tip before the transaction is sent. This technology fails to account for Table Service environments, where the card is taken from the table.

Back to the POS Software issue, most…and I do mean most, will not be ready for the Oct. 1 deadline. It has become a lesson in frustration. So here is what I have been recommending to my restaurant owners. First figure out if you are willing to take the risk, if so, you do nothing. Keep processing cards as you do today. If you aren’t willing to take the risk, get one table service device that you only use for the Chip Cards, this will allow the consumer at the table to be able to add the tip before it is sent, without having to ask for the tip verbally (awkward). There are options out there if you want to be able to accept Chip Cards without the liability, please feel free to call me at (520) 490-3829.

I have been using the EMV technology in Canada for over 3 years. On my machines there is an optional setting to allow for tips if the chip is inserted in the machine BUT if the NFC tap function is used there is no provision for tipping.

As far as table service goes there are short range wireless terminals that the wait staff take to the table.

  1. EMV cures only one liability for a merchant. If a card-present (swiped) transaction with a counterfeit card is not processed through EMV equipment then the merchant is liable for the chargeback. EMV has no bearing on a credit card data breach, although EMV transactions are generally more secure.

  2. Mercury Payment Systems offers preauth/postauth tipping with EMV.

Jeff beat me to it! Our Point of Success clients enjoy processing with Mercury, and will be rockin EMV before the deadline with new updates.

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OK, well----- we do NOT need nor do we use a POS system! We are in a rural town, our business is so small its not cost effective for us to use or have a POS system… that being said… we are not happy with our current merchant services company, considering the highway robbery/snobbery to get us the vendor/consumer of these services to pay for this ‘new’ albeit ‘old European’ technology to unfold here in the USA. We’ve been using a merchant terminal for 5 years that is “zero” rent… as it is, we do not do enough volume to cover the expensive costs associated with buying or renting a terminal… (mind you this terminal is in fact already an EMV machine, only the plastic cover that is on it has the slot blocked out… no doubt this machine goes back to the Merchant Services company, gets a new plastic covering, updated programming and goes out for a very costly price! This ticks me off to no end!)

SO, who are you independent small parlors using as your Merchant Services provider? We’ve been using TSYS, and are considering Elavon via our Costco Membership. I would like to hear from those who are using Elavon to be brutally honest about their experiences.

Thank You!

(EDIT: what ticks me off is our account with TSYS does not send us invoices, so until a letter came to us yesterday dated Sept 21st, had they done ANYTHING to let us know of the changes? NOPE, we’ve been trying for MONTHS to get a hold of our rep to resolve another issue, and he’s flatly been non reachable! So its time to bail. On the phone with them today about it, they said, everyone’s been updating their machines since MAY. So, now that everyone is scrambling, its urgent you place your order today because there may be a long wait for the equipment, blah blah blah. – it was then that I should have said… ‘you know, this terminal here IS already an EMV machine, I can tell, why don’t I cut out this window for the card insert, and you download the new programming and we won’t have to wait!’ – SIGH, yea I’d probably be give another lame excuse…)

You’re right, you don’t NEED a point of sale system. Sounds like you do need another processor, though. I could probably get you set up with a free EMV terminal from Mercury. PM me with your details if you’d like to see what we can do :wink:

Most terminals are all manufactured in some big factory somewhere on what amounts to an assembly line and are modular… sort of like most automobiles. A Chevy Tahoe with a V6 and cloth seats comes off the same line (sort of) as the Tahoe with the big V8, leather seats and premium entertainment system. The case might have a spot for the EMV hardware, but I can just about guarantee there isn’t anything in there. Plus, if it doesn’t have EMV from the factory, you can’t just go swapping plastic parts around and make it work… although it sure does look like it’s that easy! Do you know if you have an Equinox (Hypercom) T4220 terminal?

We have a VeriFone Vx570 which must be sent back to our Merchant Services company once we figure out what we’re going to do. I’m tech savvy enough to know how it is. I was just being sarcastic, esp since the cover of the terminal clearly is designed for the EMV system. Clearly, these Merchant Services companies want to make a buck for all the changes they are forced to make…

Square…free reader…2.75% fee…money in your account the next day…simple…

Sorry for taking so long to respond… life has been getting the better of me… BTW, Square doesn’t read the chip, and that is what is required or the vendor is liable if there’s any dispute over the transaction, thus I’m less likely to go that route, although some of my customers which I would because we take phone orders and deliver to the microbrewery next door, and they’d rather I’d swipe it with my smart phone… but… I don’t want to use my phone for that…

I have several free EMV terminal
Options, please contact me to discuss

Processing using the chip does not protect you when there is “any dispute over the transaction,” it only prevents chargebacks resulting from counterfeit cards.

Exactly that is what I meant to say… thanks for emphasizing what I was trying to say.

We are one week into our EMV, NFC, E2E, tokenized, etc etc etc readers.

Only 2 real issues so far
our processor had a data entry error for our account, so we couldn’t run cards, we kept getting a “No Merchant Account” error. that was fixed rapidly once I got a callback from tech support,
My only other issue is people who do not know how to use their new chipped cards!
Many card issuers require the cardholder to enter a PIN, some people do not know their PIN, and if the card is chipped, the reader will not allow a magstripe reading,
I originally thought I’d try to “Idiot proof” my reader by using a velcro attachment to secure it to our counter. That was short lived because many times the cashiers are required to insert, or slide the customers card because a customer may be clumsy and unable to insert the card, or slide it properly. and we get a “Timed-Out” error because they could follow the directions clearly shown on the LCD screen of the reader.
Another Hardware complaint, the MSR slot is awfully tight, its hard to get a card to slide through it properly for many people. So the benefits of cashiers not handling people cards has been defeated by less than stellar hardware design.
Should I whine about the insanely short USB cable too? that is ridiculous to only have a 24" cord. I’m thinking ethernet connectivity would be preferable if they insist on such short USB cords
I really liked using chargepath because I had instant access to a card summary and batch close, I might get used to NetEPay someday, but doubt it.

My only other complaints is the hardware design, the “OKAY” button on the unit is not labeled, it is simply a green button, our middle aged not so tech savvy customers have difficulty finding that large green button that is not labeled
The “Add Tip” question pops up on the screen, so it can be entered by the customer, then I also have a “add Tip” screen pop up on my POS, I had a cashier entering a tip there too, which doubled the tipped amount, so that was just something I needed to train further on.
And of course, I removed my old MSR’s only to find out the new encrypted reader wouldn’t handle loyalty cards, so I reinstalled my old MSR’s just to swipe loyalty cards

BTW, happy mercury/point of success customer here.

End of my Rant…

“Should I whine about the insanely short USB cable too? that is ridiculous to only have a 24” cord."
We can get you up to a 9 FT cord GotRocks

We haven’t made the switch yet to emv I’m really not seeing a benefit in doing so but I would advise against getting your “free” credit card machine from your processor you pay it in the fees they charge you. Our first couple of years in business we went this route I got fed up with our processor for multiple reasons and switched to chase paymentech I went on ebay got my own machine for about 150 bucks. Not sure about other processors but with chase you just download the app to your machine I have done this twice tech support walks you through it step by step it does take some time on the phone about 30 or so minutes but after that you are up and running. I am not promoting chase by any means as I feel most processors are going to give you roughly the same rates. But I did see a big savings we average about 2.65% in fees and we do a good amount of keyed in entries. Also make sure you don’t go through a middle man as they have to mark up the rates in order for them to make money.

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Thanks, but I got things where they are working, I added a hub on the front of my box, and ran my barcode scanner the card reader off the front ports.

My issues have mostly been more with customers unfamiliar with the readers, not waiting to swipe their card, not following directions on the screen, and not know their PIN when the card issuer requires them to use a pin. and at closing, I had to do a system restart to get NetEpay back online for a batch close
my only real complaint right now is people pressing the 'Debit" instead of 'Credit" button on the terminal, I wish there was a way I could disable that so the debit option/prompt does not even pop up.

If your using Mercury Payment Systems you dont have to do a batch close. Call Mercury to confirm but they should have you set to close at 4AM automatically.
Also on the terminals that have a VX805 reader go to Order Entry > Manager > Workstation Setup > Credit Card > Hit “Download Device Parm”, check the VX805 screen to make sure it says re-initializing, wait 2-3 minutes for it to say welcome. Now when you run a credit card it should not prompt for credit or debit.

William

In the 17 years in business I have had about 6 or 7 charge backs. All from “keyed in” transactions. (Delivery orders)

Emv is pointless to me as I’ve never had a “swiped transaction” chargeback.

I will never fight a chargeback because you never win !

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No Chit? Thank you.
I will do that today and see what I get
I believe I did do the “download parameters” when I installed the VX’s, but that was also the day I was getting the “No Merchant Acct.” error from the processor narfing my account number in their end.

Keyed transactions over the phone require a Zip code for the card billing address, I thought requiring a zip code was ended due to some obscure privacy laws that were enacted a few years back??? I do not mind it, if I do not get chargebacks if used, I am in a heavy tourist area that sees counterfeit currency every summer, but have been lucky enough to not have any fraudulent card usage, yet…

There is a way to turn this off too. Give support a call.