Protect Your Business From Card Fraud

When the EMV liability shift made its debut in October 2015, it created a lot of buzz, but it also came with a lot of confusion.  What many small to medium sized businesses didn’t understand was that this shift would cause credit card thieves to target smaller businesses for their crimes.

Unfortunately, we have recently witnessed small businesses suffering monetary loss due to fraudulent card use, and it just proves that criminals are taking aim at small to medium businesses. These businesses accept EMV payments, so how are thieves bypassing this system setup to protect cardholders and businesses alike?  They are making their failed payment attempts look like terminal error causing a business to key-enter the card and eliminating the security steps needed for EMV transactions.

How they do it

After fraudulently obtaining a cardholder’s information, the criminals are creating their own “copy” of the card with a magnetic strip but no EMV chip.  When paying for a transaction, the card gets swiped and the terminal displays that the EMV chip must be inserted.  At this point, the employee completing the transaction will likely manually key in the card thinking the terminal has malfunctioned because this card clearly has no chip.  The transaction is approved, and everything seems fine until you get a chargeback notification for this payment.  Because of the EMV shift, it is now your business’ responsibility to cover any fraudulent transactions.  This means even if you dispute the chargeback with the appropriate information, you will not receive your funds.

Protect your business

As a business owner or manager, you can take many steps to ensure your business is protected from fraudulent card use.  Here’s a list of things you NEED to do to avoid losing potentially large amounts of money.

1. Make sure your EMV equipment is properly working.
Faulty equipment isn’t going to protect you in the event of fraudulent card use. You’ll want to be certain the technology is current and updated.
2. Educate your employees.
Train your team about card fraud and what can happen if they do not follow proper protocol in regards to transactions. If someone is genuinely trying to make a purchase, he or she will not mind providing another card or calling their card provider to determine the cause of any potential card read error.
3. Talk to your merchant provider about updates and current events regarding card acceptance and fraud.
This industry is constantly changing, and keeping an open dialogue with your provider will help you stay aware of potential risks and changes. Join our email list to receive occasional newsletters and information. We will gladly keep you in the know.

 

Debit Card Fraud Decreases While EMV Adoption Increases

The Study

From 2015 to 2016, financial institutions in the US significantly increased usage of EMV enabled chip cards.  During that time period it was also discovered that the fruad loss rates of debit cards were lowered by about 28 percent from the 2015 levels.  This was all determined in a report PULSE Network (Discover Financial Subsidiary) recently released.

The study found that since the 2015 fraud liability shift was enacted, more and more US debit cards have been made more secure with EMV chip technology.  It’s estimated to be about 80 percent of debit cards that have been converted.

According to the Vice President of Fraud and Risk Management for PULSE, Jim Lerdel, there have been quite a few measures taken by the financial services industry that have resulted in the reduction of fraud losses reported by financial institutions.  He names the EMV chip card conversion, mobile commerce tokenization,and increased investment in fraud-fighting solutions as three top measures helping the cause.

Although fraud loss levels are seeing improved results, the study did reveal that fraud is still quite a large burden financially for debit card issuers.  The study estimates that almost $900 million was lost in 2016 to debit card fraud.

Based on the study’s findings, 2016 showed increased usage in debit cards.  Transactions where a debit card were used rose about 7 percent year-over-year.  The report also found that active customers’ number of debit transactions grew 6 percent to 23.6 transactions each month.

The full results of the PULSE Network study is available here.  It was performed by the independent management consulting firm, Olive Wyman and commissioned by PULSE Network.  The collective information was obtained through 50 participating financial institutions.

Our Take

We knew that the fraud liability shift in 2015 would start to bring about big changes in the industry as a whole, but especially with debit card usage.  This report just goes to verify our past claims.

If your business is still unable to accept chip card payments, you could be held responsible.  Please contact us today to find out how you can easily and quickly accept EMV chip card transactions at your business and avoid costly penalties and fees.

(866) 863-2660

info@targetedms.com

3 Steps to Accept Payments and Boost Business: Step 2

Step 2:  On-the-go Payments

In the previous Smooth Operations post about the 3 steps to accepting payments and boosting your business, step 1 focused on your in-house POS/terminal.  Step 2 is on-the-go payments.  Being able to accept payments away from the counter can be very advantageous for your business because it can help keep lines short and keep customers moving quickly.  It can also offer increased customer interaction, which studies have found is an important element of the checkout experience according to most patrons.*  Whether a retail store or restaurant, your business can benefit from accepting payments away from the counter and on-the-go.

Retailers

When your business is faced with busyness, it can sometimes seems like the checkout counter(s) aren’t enough to get the job done.  Customers lined up waiting can be overwhelming to employees and annoying to customers.  Now, imagine if you could take the checkout to the customer…eliminating the chaos and annoyance.

Restaurants

At-the-table checkout is not just a huge convenience for customers, but it also prevents the risk associated with servers having to carry around customers’ cards to and from the point-of-sale system or terminal.

CloverTM Flex

So, how do you start accepting on-the-go payments at your business?  Allow us to introduce the Clover Flex.  It might be small in size, but it packs a mighty punch.  It allows you to accept all forms of payments wherever you are:  cash, gift cards, credit, debit, EMV, ApplePay, Android Pay, and NFC payments.   It also accepts signatures and prints the receipt on the spot, so there is no need to go back and forth to the counter at any point during the transaction.

Clover Flex even tracks sales in real time and manages your inventory and communicates with your other Clover family products.  Flex can be the tool to take your business to the next level.  No matter your business, being able to accept payments away from the checkout counter is your step 2 for payment acceptance.

*http://www.cstoredecisions.com/2015/07/21/what-do-customers-want-from-their-checkout-experience/

When Chip Cards Hurt

For Some Businesses and Customers the Pain of Chip Card Transactions Cuts Deep

With the adoption of EMV chip card readers across the country still going strong, more and more people are concerned about the awkward and confusing interaction than the increased security features.  Honestly, if you’ve had the chance to use your “newish” chip card, you’ve likely wondered:  “Do I swipe?  Do I enter the card?  Why is it taking so long?”  So, while this added feature might help make card purchases more secure, people aren’t loving it and some are turning away from retailers because of the confusion and wait time.

In a recent survey by Cayan, almost 25% of customers say if their wait time is 5-20 seconds, they will skip that retailer in the future.  The average EMV chip card transaction is about 14 seconds.  Bad news, right?  So, as a business owner what are you to do?  You have to have the EMV readers to avoid costly liabilities, but you also want happy customers.  (Please note:  a customer who can avoid silent staring contests with your cashiers will likely be happier than one forced to participate in the silly waiting games.)

Speed It Up

  1.  Check your connection.  In today’s world, there are very few reasons for a business to still be operating a credit card terminal through dial-up.  However, a lot of businesses are still relying out outdated dial-up equipment.  If you’re one of them, it’s time for an upgrade to an internet connection, and perhaps some new technology overall.
  2. Go Mobile.  Retailers that go out of their way to make lines faster get top marks from customers.  One way many retailers do this is to have mobile payment acceptance so the employees can quickly and efficiently check out the customers already in line.  Think about it…you’re waiting in a seemingly endless line during the holidays when an employee comes to greet you and processes your transaction right there on the spot.  Smooth, right?
  3. Find a better overall solution.  Your dad’s old terminal isn’t cutting it, you need some mobile options, and let’s fire up that chip card reader wait time while we’re at it, shall we?  Welcome, CloverTM.  The Clover family is a customizable solution for any business, and it is killing the EMV chip card game with an average 3 second wait time from the initial “dip” to the “remove card” screen. That’s a heck of a lot better than 14 seconds. Oh, let’s add some icing to this Clover cake: the Clover Mini averages 2.93 seconds!

Don’t Go There

While you’re looking into keeping your customers coming back for more, there are also a few don’ts when it comes to EMV chip card transactions.

  1.  Sticky Note Mayhem.  You’ve seen it–those terminals with notes plastered all over them with instructions.  It’s impersonal, and does anyone else notice how dirty the paper gets?  Ew.
  2. That’s Weird.  There’s nothing like making an uncomfortable situation even more cringe-worthy.  Watch what you say about your chip reader to strangers, okay?

Happy Customers = Happy Business

Do your business a favor by doing your customers a favor…speed up those EMV chip card reader transactions.  You would be surprised at how much you and your employees can accomplish with updated technology, and we are here to help.  The Clover family has all that you need to effectively manage and run your business, while keeping the transaction process smooth and simple for your customers.  Let’s get your business running with Clover today!