Tag Archives: merchant services

The EMV “Chip Card” Countdown Begins

July 9, 2015 Abtek Leave a comment

We are now less than 90 days until the EMV liability shift. Come October 1^st, if your business isn’t prepared with EMV “chip card”-compatible processing equipment, you could be liable for losses due to fraudulent charges at your establishment. But, there’s no need to panic! Here, we’ve put together a handy dandy checklist to help you stay on top of the things you need to do before the October 1^st deadline hits.

Step 1: Contact Your MSP

Merchant service providers exist to help you though your payment processing challenges—and the EMV transition definitely falls in the “challenge” category. It’s not that making the transition is difficult, but rather it can be confusing for many merchants. There are so many compliance requirements to meet, and it can be tough to keep them all straight. Your MSP can help you understand what you still need to do before October and answer your questions along the way.

Step 2: Connect with a POS Provider

The average merchant only replaces their POS equipment every seven to ten years—and if you’re one of these merchants, there’s a pretty good chance that you’re going to need an upgrade in order to be able to accept EMV cards. Since EMV, or chip-and-pin cards, use a microchip to communicate payment data instead of a traditional magnetic stripe, outdated equipment will likely need to be completely replaced with new, high tech devices.

Step 3: Check Your EMV-Compatible Equipment

If you’ve already completed steps 1 and 2, you’ll want to make sure that your equipment is still up-to-standards. Even if you’ve received new EMV-compatible equipment, it might not necessarily be ready for the liability shift. Many merchants aren’t aware that the EMV requirements continue to be in flux, and have likely shifted since they bought their new POS. Your MSP can help to ensure that not only you have the equipment you need, but that it’s updated and configured properly.

Step 4: Train Employees

With new chip-and-pin cards being mailed out by credit card companies every day, more and more confused customers will begin to come through your business, not understanding exactly how to use their new cards. Now is the time to begin to train your employees on how to guide customers through the slightly modified transaction process. Happy, non-confused customers are repeat customers!

Once you’ve completed these steps, you’re not totally out of the woods yet! Moving forward, it will be your responsibility to monitor the shifting compliance requirements and ensure that your business’s equipment stays-up-to date. Of course, your MSP can help, and that’s where Abtek comes in. Give us a call today at (800) 544-9145 to find out how we can help you prepare during this final stretch of the EMV “chip card” transition.

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Merchant Service Providers, PCI Compliance

Four Common Misconceptions About PCI Compliance

April 29, 2015 Abtek Leave a comment

The cost of not maintaining PCI DDS compliance can be huge, especially when it comes to data breaches and fraud. Unfortunately, many merchants don’t fully understand everything involved with PCI compliance, so card security breaches will continue to occur.

According to a survey conducted by Proficio, 23% of respondents did not even know if their businesses met the most recent set of standards, PCI DDS 3.0, which was released at the beginning of this year.

It’s important for every merchant to understand what PCI DDS means, so that they can take the necessary steps toward ensuring payment security. While it’s not a foolproof solution, it can significantly help to deter data breaches and potential fraud.

Deciphering the Alphabet Soup (PCI DDS)

The Payment Card Industry Data Security Standard (PCI DDS, called PCI for short) is a set of 12 requirements that merchants must meet to ensure a secure environment for credit card transactions. The requirements were put in place by the Security Standards Council, comprised of the five major credit card companies: American Express, Discover, JCB, MasterCard and Visa.

PCI Myths Busted!

There are many misconceptions surrounding PCI. Here, we reveal four of the major myths and the reality behind each of them.

Myth #1 – I own a small business; only large companies and e-commerce websites need to be PCI compliant.

False! Every organization or merchant that accepts credit card transactions must be compliant. The size of the company doesn’t matter, nor does the number of credit card transactions. There are, however, different levels that businesses can fall into, as defined by the major credit card brands. Businesses must determine which level they fall into for each brand and complete the correlated compliance verification requirements.

Myth #2 – Once my business is PCI compliant, I never have to worry about it again.

Many merchants don’t realize that compliance is an ongoing process, not a one-time deal. As a business owner, you (or your merchant services provider) will need to be in continuous communication with your acquiring bank and the card brands with which you do business. This will ensure that any payment security vulnerabilities are identified and fixed in a timely fashion to maintain PCI compliance.

Myth #3 – My outsourced credit card processing company automatically takes care of all PCI issues.

Using a third-party processor can help to improve payment security and reduce risk exposure, but it is not a guarantee that your business is PCI compliant. As a business owner, you need to take responsibility to ensure that your payment processing system is up to PCI standards. Ask questions and be proactive—if they can’t answer or don’t know, it may be time reconsider your merchant services provider.

Myth #4 – Nothing bad will happen if my business isn’t PCI compliant.

If a business fails to maintain PCI compliance, payment brands, such as Visa and American Express, have the right to fine acquiring banks anywhere from $5,000 to $100,000 per month. These fees eventually trickle down to the merchant who violated the compliance. On top of that, the bank will very likely increase transaction fees or terminate the relationship with the merchant. It’s important for merchants to understand that the costs associated with PCI violations can be destructive to businesses of all sizes.

Business Owners: Take Action Now!

Not sure if your business is PCI compliant? The experts at Abtek are experienced at guiding business owners, just like you, through the complex validation process. Contact us today to find out how we help you ensure that your business’s payment processes are secure.

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Breaking News, EMV® Cards

Payments Source: EMV Education Starts with Merchants

April 13, 2015 Abtek Leave a comment

Our own Tami Cohorst, Vice President of Abtek, was recently featured on PaymentsSource.com, a leading resource for payments industry news and analysis.

With the card issuer mandate for EMV-ready merchants around the corner, are you prepared?

Globally, the U.S. is one of the last markets to implement this technology so one would think adoption of EMV is inevitable for consumers and merchants alike. Yet, with the mandate upon us, and EMV-ready equipment in place, consumers are still using “old” cards. Which begs the question: Do we need more education to merchants and awareness to consumers in the months leading up to the mandate?

Part of the education process begins with merchants. In order to successfully get buy-in from consumers, we need to look at how we can help merchants completely understand EMV technology.

So, my advice to them is always this…

Continue reading the full article at PaymentsSource →

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Data Breach, Mobile Wallets

Can Apple Pay Put Your Credit Card Security at Risk?

April 13, 2015 Abtek Leave a comment

Recently, the payment industry has been a-buzz about reports that Apple Pay may be suffering from security weaknesses. While Apple Pay offers simplicity and speed for users, it is really worth the risks? Or is all the discussion of potential fraud just a bunch of media hype?

Apple Pay 101

Apple Pay is a mobile payment service that allows consumers to make credit and debit payments directly from their iPhone 6, 6 Plus and the highly anticipated Apple Watch.

Think of it like a digital, mobile wallet.

Apple pay allows users to import their credit card information from their iTunes account into the Passbook application on their device. Once set up, customers can simply wave their phone over a Near Field Communication (NFC) terminal, located in a wide range of retail stores across the country, to make a purchase.

How Secure is the Apple Pay System?

When Apple Pay launched in October 2014, it was touted as being an “easy, secure and private” mobile payment solution. And up until recently, all was going smoothly. So what’s the real deal with all of this talk about fraud and security risks?

Fact: Fraudulent charges are being made through Apple Pay. Some estimates report that upwards of 6% of transactions made via Apple Pay are fraudulent.

However, it’s important for consumers to understand that Apple Pay accounts are not being hacked. The data infrastructure on Apple’s part is up to standards. The problem lies within the provisioning; a process in which banks verify the legitimacy of cards when they’re uploaded to Apple Pay. What’s happening is that criminals are taking stolen credit card information, creating iTunes accounts, using those accounts to provision Apple Pay accounts and then making fraudulent purchases.

At this time, consumers do not need to be overly concerned about the security of their credit card data once it’s uploaded to Apple Pay, but that doesn’t mean they’re not at risk. Consumers should always take extreme caution when sharing their credit card information to ensure that it’s going into the right hands.

Be Prepared! What Merchants Need to Know

The payment landscape is changing rapidly and for merchants, the most critical thing to take away from this discussion is an understanding of the importance of payment processing security.

Even the most diligent merchants experience fraud, but there are a number of ways that businesses can make transactions more secure for their customers. As Apple Pay and other mobile payment technologies become more integrated into the payment industry, more security weaknesses will likely emerge, and alternate solutions will need to be implemented.

During this time of transition, it’s important for you, as a business owner, to stay informed on all of the latest payment technologies and trends, and be sure that you have systems in place to ensure maximum security for your customers’ payment information.

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Merchant Service Providers, Mobile Wallets

Will Wearable Tech Revolutionize the Way Customers Pay?

March 23, 2015 Abtek Leave a comment

The era of wearable device technology has arrived. In fact, recent studies show that approximately 30 percent of United States smartphone holders already own wearables. As technology continues to advance the development of these personal devices, there will certainly be an increase in more convenient payment options for consumers—and smart retailers are catching on.

Beyond Smartphones: Wearable Tech Offers Payment Convenience

Smartphones already offer a variety of applications capable of swiping cards, processing personal information and recording product metrics. But wearable tech may go even further when it comes to making the payment process more convenient for consumers.

While the impending Apple Watch has invoked much of the interest behind smartwatches, other high-tech wearable gadgets are being developed. For example, Disney already offers guests the ability to pay for items via MagicBand, a colorful bracelet that directly links to a personal credit or debit card. The so-called “Power Suit” allows its wearer to make payments via their clothing sleeve, through use of NFC technology. And many big-league fiscal providers, like Visa, have considered investing in creation of expansive technology to take these processes even further.

This small technological revolution has the potential to redefine the way in which consumers pay for goods and services. And as we anticipate where technology will take us in the near future, all eyes are on the coming Apple Watch and its Apple Pay capabilities.

Time Ticks Down to the Launch of Apple Watch

In recent months, the Apple Watch has single-handedly piqued smartwatch (and wearable tech) interest more so than previous rivals, like the Pebble or Samsung’s Galaxy, ever did.

Although it’s not set to arrive until April 24, the industry buzz is already undeniable. A two-part survey featured on Computerworld reflected a record 8,266 consumers placing higher interest in the Apple Watch than on the “revolutionary” Google Glass.

Tech corporations and industry gurus are taking note, and merchant services may receive a significant boost from the Apple Watch’s high flexibility towards sales processing—especially when it comes to the wearer’s ability to conveniently and quickly use Apple Pay. By offering such flexibility, smartwatches have definitely shifted from mundane “power person” ideology to more practical, professional solutions.

The Optimized Consumer and the Future of Payment Processing

Faster payment processing is always the endgame for retailers, so the wearable trend is a logical next step in attempting to near that goal. When the consumer is waiting in line for a shorter amount time, more payments are being processed, and at quicker rates. At first glance, this may appear as a minimal side effect, but the overall impact of highly optimized sales processing is astounding.

So where will the future take wearable technology and merchant sales? Likely, security will be a conservative pit-stop, as fiscal dealings are historically shaky when new technology arrives. However, if wearable tech is proven to be secure—and, if the industry begins thriving upon the shift towards speed processing—more technology may follow, and it’ll further redefine the industry.

For now, however, the wearable tech trend is still in its relative infancy. We’ll be watching to see where it takes us.

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Data Breach, Merchant Service Providers, PCI Compliance

Could Your Payment Processing Methods Be Endangering Your Customers?

March 16, 2015 Abtek Leave a comment

Adopting good business finance habits ensures an establishment’s security and longevity. When credit card processing is treated with acute attention, point-of-sale transactions are quick and simple.

However, many businesses engage in a slew of less-than-safe practices, capable of undermining the entire establishment’s security.

Both negligence and bad bookkeeping can severely harm a business—and poor payment processing can compromise its customers.

Insecure Data Storage

Merchant services requires consistency and protective storage methods. Unfortunately, when PCI compliance isn’t regularly practiced, digital payments may reduce an organization’s security.

An Oswap.org business data breach analysis has figured in the many threats posed against companies utilizing point-of-sale technology. Store-based devices aren’t entirely safe from malware, malicious users or false authentication. Similarly, the following habits can severely compromise a customer’s security at, and after, the register:

Writing down credit information by hand
Using insecure mobile applications for promotions
Improper maintenance of addresses, social security numbers and credit card data
Easily accessible information systems

The Importance of Employee Training

Delegating business tasks effectively ensures a resource-savvy business. However, employee training benefits the customer’s security directly.

Task distribution promotes business connectivity, and a well-connected business may further assist its customers. When employees aren’t trained effectively, however, their customer attentiveness may dwindle. Similarly, they may forget or fail to execute vital actions needed for customer safety.

Anyone operating a business register or information database should be capable of utilizing supreme precaution. A negligent employee may not mean to compromise a customer’s information—but poorly trained job skills can absolutely exploit important information.

Credit Card Security

Forgers often utilize fraudulent credit cards and their potential danger should be understood. This primarily affects the business, rather than the consumer. However, anything capable of targeting a business’s secure data infrastructure should be considered a vital security risk to everyone involved.

When examining credit cards for purchases, merchants must remember to check the following:

Valid expiration dates
First four account numbers above the card’s first four numbers
Three-dimensional security hologram
Matching signatures

Fraudulent credit cards can affect a business when high-tech sales processing machinery is forgone, which is why maintaining comprehensive point-of-sale processing is incredibly important.

Remember: The consumer is relatively unprotected during most transactions. While a business actively maintains systems to ensure their own privacy and sustainability, consumers may be exposed. Proper routines, effective employee training and a watchful eye during transactions will not only protect the consumer’s information—it’ll breed a business atmosphere deserving of trust and success.

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Mobile Wallets

Will Mobile Wallets Soon Replace Actual Wallets?

February 23, 2015 Abtek Leave a comment

Mobile wallets aren’t just on the horizon—they’re already here. Recent smartphone applications have facilitated consumer technology capable of making instant purchases, and the trend may replace commonplace wallet purchasing within the next five years.

Mobile Wallets: The Pros

Credit card processing is quick, and it’s reliable. However, mobile wallets—when created and utilized effectively—are incredibly convenient for consumers. Mobile wallets are incredible marketing tools, too, due to their incredible accessibility and mobile purchasing’s increasing popularity. Mobile wallets propose a slew of benefits for consumers, including:

Ease of accessibility
Consolidation of funds
Immediate coupons and savings
Customer reward programs

The above mention of mobile-accessed coupons is considerably important. An Inmar Solutions trend catcher has depicted an astounding 2.9 billion digital coupon redemption volume. Additionally, approximately 77 percent of shoppers purchased groceries from non-grocer vendors in 2013. Due to a mobile wallet’s wide market accessibility, some of the world’s most vital markets will likely hook into the trend.

Mobile Wallets: The Cons

With great accessibility comes high responsibility, and the mobile wallet may propose several problems for future consumers. Merchant services still aren’t accustomed to the change—and several providers may never be.

Additionally, the mobile wallet’s incredible accessibility may pose a problem for some spenders. If you could make a purchase with one quick tap to the phone, wouldn’t you? The following cons also exist within the evolving technology, and it may hold mobile wallets back from their full potential:

Consolidation of existing technology may cause bugs
Security risks from hacking
Access to high-limit purchases may be imbalanced against credit cards

The infamous cellphone hack scandal in the UK definitely plays upon the above worries. Easy banking accessibility may enable thievery and digitally-stored credit card information may not be safe.

It Isn’t Over for Traditional Payments, Either

In fact, mobile wallets rely upon pre-existing monetary exchange systems. Small businesses can definitely profit from the mobile wallet’s design and functionality, but they’ll need to maintain classic systems and policies to take full advantage of the technology.

Why? Mobile wallets, primarily, connect to a business’s checking accounts. For now, mobile wallets are simply “quick access doors” to business transactions. They aren’t exclusive services.

You’ll Still Need Your Wallet

Mobile wallets can’t just replace fundamental wallet contents. Your driver’s license, registration, insurance card and other important, physical documentation are still required by law. Likely, mobile wallets will never accommodate for such provisions. Simply put: Security, legality and accessibility are important—more-so than a consumer’s ease-of-access to retail spheres. Regardless of a mobile wallet’s capabilities, their boundaries end where life’s other priorities begin.

In many ways, the world still needs physical proof of monetary funds, legal accessibility, health information and other important items. Mobile wallets will definitely play an integral role in retail’s future, but, for now, the leather bi-fold wallet still has a place in your back pocket…and for good reason.

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Merchant Service Providers

3 Ways Merchants Can Revolutionize the POS Experience for Customers

February 4, 2015 Abtek Leave a comment

Merchants today are using innovative technologies to improve the customer experience, giving the buyer more power and more control over the POS process. Customers are responding with increased enthusiasm to improved POS systems, and with renewed interest in the way they buy. This can be seen at retail leaders like Apple, in the everyday buying experience with online retailers and even when ordering a sandwich from tech savvy restaurants.

Using New Tech to Revolutionize POS

We can look at a few examples to see how merchants are leveraging technology, merchant services options and smart sales techniques. They use what they have available to make their jobs easier, improve sales and excite customers. Consider the following:

Apple iPad Checkout

Apple stores are famous for having numerous “Geniuses” available to guide customers through the purchasing process. It is easy to get help there when you need it, and no customer is left in the dark on what is available and what will work best for him or her. But Apple goes one step further by giving the control back to the customer–and highlighting one of its flagship products, the iPad.

When customers want to start choosing what to buy, customizing and adding different components, they are given an iPad to do it on. They can enjoy the tactile feedback and high quality visuals offered by the iPad, and choose exactly what they want to add to their shopping carts. It’s a great idea, and may even lead to an additional iPad sale. Credit card processing can be initiated on the iPad as well, making the process a complete experience.

Online Countdown Deals

Many ecommerce retailers have discovered a way to get shoppers more involved and active while perusing their stores. These merchants offer limited time deals that are tied to a countdown clock. The shopper has the option to review the deal, but is only given a limited time to decide whether or not to buy. Smart merchant services providers make this easy, giving merchants quick and painless credit card processing options and the technology to customize the shopping experience with things like countdown deals and customized shopping experiences.

Self-Checkout Sandwiches

Even certain restaurants are getting on the technology wave, using mobile merchant accounts and iPads to let customers do their own ordering. These restaurants display a menu, give a written explanation of how the system works and then allow customers to order exactly what they want on an iPad. Instant online payments and credit card processing through modern merchant services providers make customer payments a breeze as well. This also makes customized ordering–no mayo, add mustard, hold the pickles–painless for the buyer.

Customers Love Innovation and Control

Consumers enjoy using innovative technologies like touchscreens to enhance their buying experience. They also appreciate the control that these tools give them. Granted, there will always be a few people that dislike what’s new. Returns, complaints and chargebacks will still occur. But overall, these revolutionary approaches to POS and customer experiences offer a better way of doing things, both now and in the future.

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Tips

Scan vs. Swipe: The Benefits of NFC Payments

January 19, 2015 Abtek Leave a comment

With its Apple Pay product, Apple is kick-starting the scan vs. swipe revolution that credit card and mobile wallet companies have been trying to usher in over the past few years. Scanning, which allows brick-and-mortar businesses to be more competitive with ecommerce ones, was made possible through the development of near field communication (NFC)—a technology that allows two devices to communicate and exchange information with one another wirelessly.

Stores and businesses equipped with NFC technology can scan a customer’s card or smartphone for payment instead of swiping their credit card through POS systems. So how do NFC payments benefit you and why are merchant services companies promoting it?

Ease of Use

NFC is easy for both retailers and customers to use. Set up and installation is simple and your merchant services provider can answer any questions you have. Consumers simply scan their credit card or smartphone for payment. For smartphone users, there’s the extra benefit of not having to carry multiple store and credit cards in their wallets. They can pre-load all payment information to a mobile wallet app on their smartphone.

Cost Reduction

Businesses that want to offer NFC payments as an alternative to traditional credit card processing will have a one-time cost of purchasing the readers. Readers are reasonably priced and can be obtained from your merchant services company. Reduced paper product use will save you money and attract customers who prefer to do business with environmentally conscious companies. Aside from the purchase of the reader, NFC payments can cost you less annually than standard credit card processing.

Payment Processing on the Go

Since there are no paper receipts requiring signature, payment processing via NFC is much faster. Businesses equipped with NFC readers can handle more customers in a day than those with standard POS systems. Customers who like the ease of online payments will be drawn to businesses that offer self-service NFC readers at their checkouts. Service professionals and salesman in the field who have mobile merchant accounts can also take advantage of NFC.

Advertising and In-Store Marketing

NFC lets customers quickly and easily redeem coupons and gift cards, and add to loyalty reward programs—benefits that are unavailable with traditional credit card processing. Besides these wins for customers, you can use NFC to offer discounts for and promote your products and services. Retailers can also take advantage of NFC’s in-store marketing capabilities. As customers near certain products or areas in a store, NFC can send targeted coupons or product information to their mobile devices. Through various mobile programs and apps, customers can trade discounts and offers with other users.

Improved Security

Magnetic stripe readers are subject to counterfeit cards and skimming. Enhanced security technology that can eliminate these types of fraud is compatible with NFC’s wireless communication, but not with magnetic stripe readers. Reduced fraud means fewer chargebacks and more profits for merchants.

Stay updated on payment processing trends by following Abtek on Twitter and Facebook. Sign up to receive our newsletter, too.

Step 1: Contact Your MSP

Step 2: Connect with a POS Provider

Step 3: Check Your EMV-Compatible Equipment

Step 4: Train Employees

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Deciphering the Alphabet Soup (PCI DDS)

PCI Myths Busted!

Myth #1 – I own a small business; only large companies and e-commerce websites need to be PCI compliant.

Myth #2 – Once my business is PCI compliant, I never have to worry about it again.

Myth #3 – My outsourced credit card processing company automatically takes care of all PCI issues.

Myth #4 – Nothing bad will happen if my business isn’t PCI compliant.

Business Owners: Take Action Now!

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What’s Coming Up?

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Apple Pay 101

How Secure is the Apple Pay System?

Be Prepared! What Merchants Need to Know

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Beyond Smartphones: Wearable Tech Offers Payment Convenience

Time Ticks Down to the Launch of Apple Watch

The Optimized Consumer and the Future of Payment Processing

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Insecure Data Storage

The Importance of Employee Training

Credit Card Security

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Mobile Wallets: The Pros

Mobile Wallets: The Cons

It Isn’t Over for Traditional Payments, Either

You’ll Still Need Your Wallet

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Using New Tech to Revolutionize POS

Apple iPad Checkout

Online Countdown Deals

Self-Checkout Sandwiches

Customers Love Innovation and Control

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Ease of Use

Cost Reduction

Payment Processing on the Go

Advertising and In-Store Marketing

Improved Security

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Credit Card Processing and Merchant Account Solutions